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The glory of this stock's super growth is finally fading

Michelle Zhu
Michelle Zhu9/25/2017 11:09 AM GMT+08  • 3 min read
The glory of this stock's super growth is finally fading
SINGAPORE (Sept 25): CIMB Research is downgrading its call on SATS to “reduce” from “hold” with a lower price target of $4.24 compared to $5.11 previously, after accounting for slower revenue growth from food solutions and its Japanese subsidiary,
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SINGAPORE (Sept 25): CIMB Research is downgrading its call on SATS to “reduce” from “hold” with a lower price target of $4.24 compared to $5.11 previously, after accounting for slower revenue growth from food solutions and its Japanese subsidiary, TFK Corporation.

Its new target price is now 18 times CY19 P/E estimates based on a five-year mean.

The research house has also lowered its EBIT margin forecast for FY18-20 to 13% from 13.4-15% previously on expectations of higher staff costs, as it believes wage growth may accelerate in 2018 with the anticipation of improving GDP growth in Singapore.

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