SINGAPORE (June 3): Citigroup is maintaining its “buy” recommendation on SATS.

The investment bank advises investors take advantage of the recent weakness in the airport ground handling and catering services provider’s shares as a buying opportunity.

SATS is well positioned to participate in the growth in the region, while continuing to develop its foothold in Singapore, Citi says.

“We believe SATS will be one of the largest beneficiaries of the new Changi Terminal 4 when completed in early 2018,” it adds.

Overseas, SATS is doing well in Japan and will benefit from the expansion of India's Vistara, a joint venture between Singapore Airlines and India's Tata Group.

But the “real long-term opportunity” for SATS is in China, Citi says, pointing to its joint venture with Wilmar International in which SATS owns 60% equity stake.

At 2.16pm, SATS is down 0.5% at $4.12, compared with a 0.5% gain in the Straits Times Index.