DBS Group Research anticipates challenges for SATS in FY26 due to fragile cargo demand and trade contraction, with a strategic pivot expected in FY27.
The FY25 results, excluding one-off items, were in line with expectations, providing a stable financial foundation.
Despite some relief from the suspension of US tariffs, DBS Group Research warns that the demand for cargo remains fragile, which could impact the company’s performance in FY26.
The company has adjusted its net profit forecasts for FY26 and FY27, reducing them by 14% and 8%, respectively, due to anticipated trade contraction and limited opportunities for trade diversion.
DBS Group Research maintains a “BUY” recommendation, albeit with a revised target price of $2.55 (SGD3.50).
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