Broker Name: CGS International
Date of Report: July 16, 2025
SATS Ltd: Early Uptrend Signals Strong Bullish Momentum; Mixed Outlook for Singapore REITs Amid Tariff Uncertainty
Market Recap: Inflation, Tariffs, and Shifting Rate Expectations
Global markets recently digested a mix of inflation data and tariff-related news. Despite relatively tame U.S. inflation figures, concerns remain as companies begin to pass on tariff costs to consumers. The S&P 500 briefly surged before paring gains, while 30-year Treasury yields exceeded 5% and the U.S. dollar rose 0.5%. Notably, traders now see only a slightly higher than 50% chance of a Federal Reserve rate cut in September, with overall odds for multiple cuts in 2025 declining. The big question for investors: when and how strongly will tariff-driven inflation materialize?
SATS Ltd: Technical Analysis and Investment Outlook
Company Overview: SATS Ltd. is a leading provider of gateway and food solutions, specializing in airfreight, ramp and baggage handling, passenger services, aviation security, aircraft cleaning, cruise centre management, airline and institutional catering, aviation laundry, food distribution, and logistics. The company boasts a robust presence across Asia and the Middle East.
| Aspect |
Value / Level |
| Last Price |
3.24 |
| Entry Prices |
3.24, 3.09, 3.00 |
| Support 1 |
3.16 |
| Support 2 |
2.44 |
| Stop Loss |
2.82 |
| Resistance 1 |
3.26 |
| Resistance 2 |
4.00 |
| Target Price 1 |
3.66 |
| Target Price 2 |
3.83 |
| Target Price 3 |
4.12 |
| Target Price 4 |
4.42 |
Technical Snapshot and Analysis:
- SATS has nearly achieved its first target price of 3.26, aligning with the previous analysis from late May 2025.
- The stock has broken above an intermediate downtrend line and established an early uptrend channel, indicating renewed bullishness.
- Ichimoku indicators confirm a strong bullish signal: the stock price closed above all Ichimoku indicators, all of which are trending upwards.
- The MACD line is steadily rising towards the zero line, with a positive histogram, reinforcing the bullish momentum.
- The Stochastic Oscillator is climbing, and even though it is in overbought territory, corrective pressures remain weak—bulls still dominate.
- The 23-period Rate of Change (ROC) is positive, highlighting ongoing momentum.
- The Directional Movement Index (DMI) signals a steady and strong bullish trend.
- Trading volume is expanding healthily, supporting the sustainability of the uptrend.
Singapore REITs: A Mixed Bag as Tariff Risks Loom
The outlook for Singapore REITs (SREITs) this reporting season is mixed:
- Overall sector Distribution Per Unit (DPU) is expected to remain relatively flat year-on-year.
- Investors should pay close attention to updated guidance on debt costs and the potential impact of global tariff hikes.
- CGS International maintains an Overweight rating on SREITs, with CapitaLand Ascendas REIT (CLAR) and Keppel DC REIT (KDCREIT) as top picks for the sector.
Key Observations and Sector Recommendations
- Inflation and Tariffs: Although inflation has been subdued for several months, the delayed impact of tariffs is a major concern. Companies are starting to pass on these costs, potentially leading to an “inflation reckoning.”
- Fed Rate Outlook: The Federal Reserve is in a wait-and-see mode, focusing on upcoming inflation and jobs reports before making any decisions on interest rates.
- SREITs Strategy: With sector DPU flat, the focus remains on debt cost management and assessing tariff impacts. The Overweight sector call is underpinned by select REITs expected to weather macro headwinds better than peers.
Stock Rating and Recommendation Framework
| Stock Rating |
Definition |
| Add |
Total return expected to exceed 10% over the next 12 months. |
| Hold |
Total return expected between 0% and +10% over the next 12 months. |
| Reduce |
Total return expected to fall below 0% over the next 12 months. |
Sector and country ratings follow a similar Overweight, Neutral, and Underweight framework, indicating relative positioning against benchmarks.
Distribution of Stock Ratings (as of June 30, 2025)
| Rating |
Coverage (%) |
Investment Banking Clients (%) |
| Add |
70.6% |
1.1% |
| Hold |
20.5% |
0.5% |
| Reduce |
8.9% |
0.5% |
Coverage universe: 561 companies for the quarter ended June 30, 2025.
Important Disclaimers and Regulatory Information
This research is strictly for informational purposes among clients of CGS International. It does not constitute an offer or solicitation to buy or sell securities or financial instruments. Investors are strongly advised to evaluate their own financial objectives and seek advice from qualified professionals before making investment decisions. The report outlines applicable restrictions for distribution in key jurisdictions, ensuring compliance with regional financial regulations.
Conclusion: Early-Stage Uptrend for SATS Ltd and Cautious Optimism for SREITs
In summary, SATS Ltd. demonstrates robust technical momentum, making it a strong technical buy candidate with multiple target price levels ahead. For Singapore REITs, the near-term outlook is stable but clouded by global tariff uncertainties and the need for prudent debt cost management. Investors should remain vigilant, monitor macroeconomic signals, and focus on sector leaders highlighted in this analysis.
