SATS - DBS Research 2026-04-30: Fundamentals Intact, Multiple De-rating Overdone

• SATS (SGX:S58) has outpaced industry cargo growth for nine consecutive quarters, gaining share through new contract wins and deeper wallet share with existing customers.
• Growing volumes despite a subdued global trade backdrop underscores the strength of its integrated global network and execution discipline.
• - Read this at SGinvestors.io -

Earnings moderation.

• We reduce our SATS' FY27/28F core net income estimates by 10%/8% to reflect softer cargo volumes and lower operating leverage following recent airspace disruptions and slower growth.
• Cargo volumes have weakened near term, but underlying demand indicators remain intact, with steady manufacturing activity and inventory build suggesting deferred rather than destroyed demand.

Core EPS to grow at a 14% CAGR over FY26–28F, supported by resilient cargo and margin expansion.

• - Read this at SGinvestors.io -
• Air cargo demand should continue to expand in FY27F, albeit at a slower pace, supported by AI-related shipments from hyperscaler capex alongside resilient e-commerce flows, which together help offset cyclical softness.
• We still expect a modest increase in travel volumes in FY27F, supporting resilient aviation catering and ground handling volumes, alongside contributions from the Mitsui partnership and a broader non-aviation food portfolio.

Maintain BUY; target price lowered to S$4.20.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Previous report by DBS:
2026-03-02 SATS - Cargo Strength Drives Earnings Beat In 3QFY26 With Firm Momentum Into FY27.

Price targets by 4 other brokers at SATS Target Prices.

Listing of research reports at SATS Analyst Reports.

Relevant links:
SATS Share Price History,
SATS Announcements,
SATS Dividend Payout Dates & Corporate Actions,
SATS News