The research house has also lowered its EBIT margin forecast for FY18-20 to 13% from 13.4-15% previously on expectations of higher staff costs, as it believes wage growth may accelerate in 2018 with the anticipation of improving GDP growth in Singapore.
SINGAPORE (Sept 25): CIMB Research is downgrading its call on SATS to “reduce” from “hold” with a lower price target of $4.24 compared to $5.11 previously, after accounting for slower revenue growth from food solutions and its Japanese subsidiary, TFK Corporation.
Its new target price is now 18 times CY19 P/E estimates based on a five-year mean.
