UOB Kay Hian cuts Sats target price to S$2.89, downgrades it to ‘hold’ on likely tariff impact

[SINGAPORE] Freight handler Sats might be hit by a potential slowdown in globalisation and decline in global trade volume as a result of the United States’ reciprocal tariffs, prompting one research house to slash its target price and downgrade the stock to “hold”.

UOB Kay Hian on Wednesday (Apr 9) lowered the target price of the Singapore mainboard-listed air freight handler and inflight caterer to S$2.89 from S$4 as it tentatively cut its FY2026-2027 air cargo volume projections for Sats by 5 per cent, and reduced its earnings projections by 17 to 18 per cent.

Analyst Roy Chen said Sats derives 50 per cent of its group revenue from its global air cargo handling business, with the United States being its top market accounting for 25 per cent of group revenue.