Sum warns that Sats might see a slow down in the growth of Sats' cargo business in the near term because of a slowing economy.
DBS Group Research's Jason Sum has upgraded his call on Sats from "hold" to "buy", on the premise that the company's share price, which has dropped following the rights issue to fund the acquisition of WFS, is now at a level that gives an attractive risk-reward ratio.
In his May 19 note, Sum describes Sats, led by president and CEO Kerry Mok (picture) as a globally diversified aviation services and food solutions provider. It is not merely one of the world's largest ground handler, but also a "prominent" player in Asia's food solutions sector, serving not just airlines but also other big customers ranging from hotels to restaurants.
