SATS upgraded to "hold", target raised to $2.84 by DBS Vickers

Stock Name: SATS
Company Name: SATS LTD.

Research House: DBS Vickers

Price Call: SELL

Target Price: 2.84

SINGAPORE (Feb 5): DBS Vickers has upgraded SATS to "hold" from "fully valued" and raised its price target to $2.84 from $2.70 after increasing its earnings estimates for FY2015 to FY2017 by 3% to 4% to reflect the company's December-quarter results.

Earnings for the quarter rose 25% y-o-y to $53.7 million, despite a 3% fall in revenue, as contributions from associates and joint ventures were higher.

Challenges in the near term remain, however, as the aviation industry is still weak, DBS Vickers analysts Alfie Yeo and Andy Sim noted in a report today.