Brokers' take

SATS | BUY Target price: S$5.40 Sept 28 close: S$4.65 UOB Kay Hian, Sept 28

We believe that the street has not appreciated SAT's superior scale for both catering and ground handling and its ability to prevail in the event that a pricing war continues.

SATS also handles about 144,000 flights versus Dnata's 40,000. Dnata's CEO reportedly has stated that SATS has been aggressively cutting prices and that this has impacted Dnata's profits.