However, a UBS report says, while maintaining its buy call, it has lowered its 12-month price target to $4.10 from $4.35 as it is expecting a 2%-14% decline in earnings per share (EPS) in FY2027-FY2029. Sats has a March year-end.
Going by the valuation accorded to Sats and its price performance, net tangible asset (NTA) doesn’t matter since Sats’ share price has risen by about 20% (as at June 3) following the announcement of its FY2026 results on May 25. This is despite Sats’ historic NTA fluctuating around plus or minus zero. Based on the 11 buys in Bloomberg’s analysts’ poll and no holds or sells, Sats has convinced the investing community it does not need to impair the substantial goodwill it paid for Worldwide Flight Services (WFS).
The upside targets for Sats in the Bloomberg poll are as high as $4.75, which is pretty good for a company with little or no NTA. The analysts would argue that growth in cargo and ground handling services justifies the company’s $4 share price. In addition, its historic P/E is a modest 21 times, which is not that much higher than the STI’s P/E range of 15-17 times.
