SATS

SATS: (S$4.47) After recent surge, rich valuations leave little room for upside
- Maybank KE cuts rating to Sell from Hold but adjusts TP a tad higher to $3.86 from $3.82
- Recent surge in share price a cause of concern as the market appears to be pricing in lofty expectations of future earnings growth
- At 21.3x forward P/E, the house believes that valuations are rich and near its historical peak
- Although 4QFY16 is expected to be strong, earnings growth will moderate to just 3-4% in FY17-18
- Aside to this, SATS offers a relatively decent yield of about 3.1% which is well backed by a net cash position of $308.1m as at 3QFY16.