SATS: Deutsche rates Buy with $3.20 target. Thinks company well positioned to defend its market share and margins from the threat of a new entrant, once Changi Airport awards third ground-handling licence. Notes it would be difficult for a new entrant to operate, given the customer stickiness (contracts last at least three years) and lack of economies of scale. Second stage of 2-phase tender closes Sep 17, with AirAsia, Aircraft Service Int’l, Jetstar, Sia Engg as shortlisted candidates
Winner expected to start operation under 10yr license in 1H11.
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