SINGAPORE (May 31): UOB Kay Hian, DBS Vickers Securities and Maybank Kim Eng are maintaining their “buy” calls on SATS post the gateway services and food solutions provider’s release of its 4Q18 results, which declined from a year ago due to lower associate and joint venture (JV) profits as a result of a one-off accounting treatment, according to the management.
Both UOB and DBS have lowered their target prices on the stock to $5.70 and $5.64, respectively, from $5.80 and $5.67 previously -- while Maybank has adjusted its target price upward to $6.15 from $6.10 on expectations of new ventures to drive the group's growth over the next three to five years.
In a Thursday report, UOB analyst K Ajith highlights the improvement of returns on JVs and associates as a key challenge for SATS going forward, especially since the group is intending to invest a substantial amount in these ventures.
