SATS: Deutsche upgrades to buy, TP $2.96 from $2.33, brighter skies ahead. With recessionary risks receding, confident SATS' recent operational resilience will be sustained. Japan is back in focus as traffic recovery gathers pace and given JAL's turnaround.
SATS' improving operational outlook supports sustainability of its 5% div yield and management's growing capital efficiency focus underpins ongoing capital return potential. Raise estimates and now expect 15% FY13e underlying NPAT growth. Valuations are undemanding versus historics and peers.
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