Broker: DBS Group Research
Date of Report: 30 April 2026

Excerpt from DBS Group Research report.

Report Summary

• Stock: SATS Ltd
• Action: Maintain BUY
• Target Price: SGD 4.20 (lowered from SGD 4.50)
• Key Points:
  • SATS is one of the world’s largest ground and air cargo handlers and a major player in aviation food solutions.
  • Strong structural drivers in air cargo (AI-related shipments, e-commerce) and resilient aviation catering volumes support medium-term growth.
  • Core EPS expected to grow at a 14% CAGR over FY26–28F, despite a moderation in earnings estimates for FY27/28F (reduced by 10%/8%).
  • SATS is actively deleveraging post-acquisition, targeting annual debt reduction of SGD100–200mn, aided by improving free cash flow and anticipated Fed rate cuts that should lower funding costs by 50–100bps.
  • Valuations are attractive following a sharp de-rating; the stock trades around 16.2x forward P/E, well below its historical average.
  • Near-term risks include a prolonged fuel shock or rising trade tensions that could impact cargo and passenger flows.
  • Dividend payout ratio expected to remain at 30-40% (below pre-pandemic levels of 70-80%), with focus on using cash flow for debt repayment.
• Ticker: SATS SP

above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website : https://www.dbs.com.sg