SATS upgraded to "hold" by CIMB

Stock Name: SATS
Company Name: SATS LTD.

Research House: CIMB

Price Call: HOLD

Target Price: 2.95

SINGAPORE (Feb 5): CIMB has upgraded SATS to "hold" from "reduce", citing the company's 4.6% dividend yield.

SATS's net cash of $258 million should be able to sustain its 80% dividend payout policy, according to CIMB analyst Lim Siew Khee, who has a price target of $2.95 on the stock.

Meanwhile, the company's increased focus on cargo operations and cost management is paying off, she said in a note, as Ebitda margins rose to 15% in the quarter ended Dec 31 from 13.2% as at Sept 30.