Where do analysts see the SATS share price going next?

Here's what analysts think about SATS’ shares, which are currently trading at S$3.20 each, roughly 41% below their 52-week high.

Shares of Singapore aviation ground handling operator SATS continue to trade well below their 2020 peak.

As at 10:45 SGT on Thursday 18 June 2020, the company’s equities are being offered at S$3.19 apiece, based on the latest IG data.

This is nearly 38% below the highest traded price of 2020 so far of S$5.12 a share, achieved on 02 January – the year’s very first trading session. It is also roughly 41% lower than a 52-week high of S$5.43 a share, posted on 16 July 2019.

What’s the story behind SAT’s recent share price trajectory?

Since our last update, SATS’ share price has fallen further, with intermittent rises in between.

Between 30 April 2020 and 15 May 2020, the aviation services company’s market valuation plummeted 15%, as regional and global socio-political events shook investor confidence everywhere.

As an indicator – on Friday 22 May 2020, Singapore’s blue-chip stock benchmark Straits Times Index (STI Index) fell over 2% after it was reported that China’s rubber stamp parliament National People’s Congress would meet on Friday to debate a national security law that has been widely described as ‘controversial’.

The proposed law, which has since been passed in a bid to ban secession, foreign interference, "terrorism" and all seditious activities targeting the Chinese central government, has been widely described as Beijing’s response to the 2019 Hong Kong protests.

Conflicting reports on Covid-19 trial results by various US drug makers, also took stock markets – not just Singapore’s – on a rollercoaster ride.

Are you looking to trade stocks of SATS Ltd and other Singapore companies without having to buy and sell the actual assets? You can explore CFD trading by signing up for an IG account.

SATS’ share price soared 29% in early June

However, the stock experienced a massive price recovery between 01 June and 08 June, as it surged over 29% during this period, as investor sentiments picked up with businesses being allowed to reopen following months of movement restrictions and lockdowns.

Singapore also entered a so-called ‘phase-one’ of its lockdown easing on 02 June 2020. As part of this initial reopening phase, more schools, offices and businesses – including those in the manufacturing and services sector – were the first to resume operations.

SATS was the second best performing large capitalisation stock on the STI Index that week, with its share price rallying a bumper 19.2%.

Despite new concerns over a second wave of Covid-19 infections, interspersed with sprinklings of optimism via the US Federal Reserve’s new bond purchase plan, not much has changed since then, with shares trading sideways for the most part along a median point of S$3.25 per share.

Where do analysts see SATS going from here?

DBS equity researchers at the start of June raised their stock rating on SATS to a ‘hold’ from ‘negative’, and 12-month share price target to S$2.64 a share, up from S$2.61 previously.

They upgraded their view as they as do not envision ‘further downside on the stock’ with Singapore now easing its lockdown restrictions and allowing passengers to transit through Changi Airport from 02 June.

They wrote that this is positive for SATS, and should put the company on the path to an earnings recovery in the 2020 financial year, barring another widespread outbreak.

However, they cautioned that they preferred to take a neutral stance on the aviation stock as the outlook for regional aviation remains muted as regional travellers remain cautious.

CIMB analysts, on the other hand, had rated the stock a ‘reduce’ alongside a share price target of S$2.56 per share.

They had stated that they ‘still expect SATS to be in a loss’ of roughly S$100 million this year, despite an estimated S$140 million in Job Support Scheme funding to be received by the firm. The funding amount is based on 5500 qualifying Singaporean/Permanent Resident staff at an average salary of S$3,400 a month for 10 months.

How to trade SATS shares with IG

Are you feeling bullish or bearish on SATS Ltd and other SGX stocks? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:

  • Create a live or demo IG Trading Account or log in to your existing account
  • Enter <company name> or <ticket code> in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

React to global volatility

Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and only incur a fee when triggered
  • Round-the-clock assistance – our highly skilled team are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.