Brokers' take

SATS > Hold (downgraded) OCBC Investment Research, Jan 11 Jan 11 close: S$4.91 Fair value: S$5.23

FOLLOWING our downgrade on SATS on Nov 9 and the release of its second quarter results, the share price of the ground handler dropped by 9.1 per cent compared to the Straits Times Index's 0.2 per cent fall over the same period. This was based on the counter's closing price on Nov 28.

We upgraded our rating to "Buy" on Nov 29, and SATS's share price rose by 6.2 per cent between then and its closing price on Jan 10. At current levels, we see diminishing upside in the near term after the price appreciation.