Wednesday, February 9, 2011

SATS - BNP Paribas downgrades SATS to Hold from Buy

Stock Name: SATS
Company Name: SATS LTD.
Research House: BNP Paribas


BNP Paribas downgrades SATS (S58.SG) to Hold from Buy and cuts its target price to $2.62 from $3.23 after lowering 2011-13 earnings estimates by 7.6%-14.1%, citing deteriorating aviation growth momentum and rising food material prices. 



“SATS is trading at 14.9X our FY12 P/E, which is 12.2% higher than the stock’s historical average P/E. In view of the near-term uncertainties, we expect the upside potential to be capped,” the house says.

The stock is down 1.1% at $2.62.

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