SATS | Maybank Research | BUY | Target Price S$5.09 | 01 Jul 2026

Maybank keeps SATS at BUY, raises its DCF-based target price to S$5.09, and argues the post-results share price move is more than a short-term relief rally due to clearer visibility on long-term growth drivers.

Key calls and valuation

The analysts lower WACC from 10.6% to 10.0% as they see lower execution risk, and lift FY26–27 earnings by 2.5% and 9.7% respectively, mainly on stronger expected contribution from the Thailand central kitchen from FY27.

At the time of writing, they highlight SATS is trading at about 21x FY27E P/E with a 1.5% dividend yield, which they view as attractive versus growth prospects.

Recommendation is BUY with a raised target price of S$5.09, based on DCF.

Growth thesis and FY29 targets

Management reiterates FY29 aspirations of revenue above S$8 billion, EBITDA margin of at least 20%, and ROE of 15%.

Maybank sees these targets as increasingly credible, supported by: sustained share gains in air cargo, better utilisation across the global food solutions network, and selective M&A into new cargo hubs.

A core plank is cargo, where SATS’ volumes have outperformed IATA for 10 consecutive quarters, aided by its global network and exposure to resilient tech and e‑commerce flows; Maybank projects about 5% cargo volume growth in FY27 with yields holding.