SATS a good long-term bet but sit tight for now

GROUND-HANDLER SATS is continuing to build its footprint overseas, which places it in good stead for long-term growth, but investors might want to sit tight for now.

The stock of SATS has climbed from S$4.22 on July 1 to a peak of S$5.11 on Sept 21. On Sept 20, the day when the counter gained 14 Singapore cents, the Singapore Exchange (SGX) queried the unusual price movement. In response, the ground-handler said that it was not aware of any reasons for the spike in trading activity.

Even with Thursday's fall of seven cents to S$4.98, the stock price is still above analysts' 12-month consensus target of S$4.69, based on Bloomberg data.