SATS upgraded to "hold", target raised to $2.80 by Maybank Kim Eng

Stock Name: SATS
Company Name: SATS LTD.

Research House: Maybank Kim Eng

Price Call: HOLD

Target Price: 2.80

SINGAPORE (Feb 5): Maybank Kim Eng has upgraded SATS to "hold" from "sell" and raised its price target from $2.70 to $2.80, still pegged at 16 times projected FY2016 earnings.

The changes reflect what Maybank Kim Eng analyst Derrick Heng said was SATS's better-than-expected results for the quarter ended Dec 31.

Earnings rose 25.2% y-o-y to $53.7 million as cost cuts offset a drop in revenue.

"We believe the cost-cutting is sustainable and will better position the company for the future," Heng said in a note today.