Stock Name: SATS
Company Name: SATS LTD.
DMG & Partners Research in a July 29 research report says: "SATS recorded 1QFY12 PATMI of $42.5 million (-4% y-oy), coming in below our expectations. This included a full-quarter consolidation of TFK's results. Stripping out TFK's results, SATS' PATMI declined 11.1%, dragged down by higher operating expenses, especially raw materials cost.
"We have raised our FY2012 revenue estimates by 9.8% to $2,061.9 million on the back of improving business volumes in its aviation operations. However, we believe that inflationary pressures would continue to dampen earnings growth in the next few quarters, and have lowered our margin assumptions.
"Consequently, our earnings estimates are lowered by 1.4% to $201.5 million. Our revised DCF-based target price is $2.92 (previously $2.98), implying a 13% upside. MAINTAIN BUY."
Company Name: SATS LTD.
| Research House: DMG | Price Call: BUY | Target Price: 2.92 |
DMG & Partners Research in a July 29 research report says: "SATS recorded 1QFY12 PATMI of $42.5 million (-4% y-oy), coming in below our expectations. This included a full-quarter consolidation of TFK's results. Stripping out TFK's results, SATS' PATMI declined 11.1%, dragged down by higher operating expenses, especially raw materials cost.
"We have raised our FY2012 revenue estimates by 9.8% to $2,061.9 million on the back of improving business volumes in its aviation operations. However, we believe that inflationary pressures would continue to dampen earnings growth in the next few quarters, and have lowered our margin assumptions.
"Consequently, our earnings estimates are lowered by 1.4% to $201.5 million. Our revised DCF-based target price is $2.92 (previously $2.98), implying a 13% upside. MAINTAIN BUY."
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