The Middle East conflict is seen to have limited impact, given how Sats' direct exposure is capped at between 2 and 3%, alhough the analysts acknowledge that indirect effects are harder to quantify.
UBS has kept its "buy" call for Sats, but with a raised target price for Sats from $3.85 to $4.35, with a view that its global air cargo network business will remain resilient amid uncertainties of economies and trade.
"While near-term macro and geopolitical uncertainties persist, we believe Sats' diversified footprint provides an effective buffer against trade flow disruptions, allowing volumes to be rerouted across regions, even as airspace and supply chains adjust," state analysts Melissa Leong and Rachel Tan.
