SATS: Nomura reaffirm Buy with $3.30 TP. Note that 4Q11 results on 16 may, before mkt. Note that share price has underperformed significantly despite reporting decent operating metrics, due to concerns over the ground handling license at Changi. Believe that concerns are overdone and the stock should re-rate once the Changi license is declared…..
Stock continues to look attractive, trading at 13.1 FY11 P/E, at the mid range of its historical range, and div yield of 5.7%. For 4Q11, estimate earnings of 45.1m, -3% YoY, slightly lower than estimate of $52.5m, which would put FY11 earnings growth at 6.3% YoY. Growth expected from acquisitions in aviation/food.
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