SATS

SATS: Deutsche reiterates Buy, lifts TP from $3.05 to $3.41. Believes SATS has significant capital return potential, supported by a strong balance sheet (net cash $130m), dividend track record and no significant capex requirements in the near term. In the absence of M&A and assuming gradual increase in leverage over 5 yrs, the house notes this could imply additional 10c/sh div payout, taking the total div yield to almost 8% from the current 4.4%. Adds traffic trends are stable, and SATS recent market share gains are a positive surprise. Over the longer term, believes revenues from the Sports Hub contract will be incrementally supportive.