Keppel and SATS: What Are Analysts Predicting for These Two SGX Shares?
This article is republished with permission from Tip Ranks .
06-Jun-2023
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SGX-listed companies Keppel Corporation Limited (SG:BN4) and SATS Limited (SG:S58) have Moderate Buy ratings from analysts. According to analysts, Keppel’s share price is projected to have a potential upside of 23%, while SATS is expected to offer a growth opportunity of 21%.
Additionally, on the TipRanks Smart Score tool, both of these stocks have earned higher scores, indicating their potential to surpass market returns. Keppel achieves a “Perfect 10” on the Smart Score tool, while SATS scores a nine out of ten.
Let's dig deeper into these stocks.
Keppel Corp. Share Price Target
Keppel is a diversified conglomerate that operates in multiple sectors, such as marine, infrastructure, energy, asset management, and urban development. The company's share started the year 2023 on a strong note and has gained 32.2% YTD.
Recently, six days ago, DBS analyst Pei Hwa Ho reiterated her Buy rating on the stock, forecasting a growth of 30.5% in the share price. She is highly bullish on the company's strong position in real estate and green industrial space. She added that the stock is an “undervalued gem."
According to Ho’s projections, Keppel is expected to achieve a CAGR of 12% in earnings over the next two years. This growth will be primarily driven by its asset management business, which generates a reliable and recurring stream of fee income.
Overall, BN4 stock has a Moderate Buy rating on TipRanks based on four Buy and one Sell recommendations. The average price forecast of S$7.84 implies a growth of 23.2% in the share price.
What is SATS' Stock Price Target?
SATS is primarily a food services company that specializes in catering to the aviation sector. In addition, the company offers services such as aviation security, warehousing, and passenger services.
Contrary to Keppel, SATS' stock has lost 35% in the last year. The company's share price fell sharply after it announced a deal to acquire Worldwide Flight Services (WFS) for $1.64 billion. The shareholders were unhappy after the company mentioned that a portion of the deal would be funded through a $1.7 billion equity fundraising.
DBS analyst Jason Sum feels now is the right time to invest in the stock, considering its "attractive risk-reward ratio." He also added that the WFS acquisition will start delivering synergies, and the company’s debt refinancing activities will lead to more interest savings in 2025.
Six days ago, Sum reiterated his Buy rating on the stock at a price target of S$3.20, which is 28% higher than the current price level.
On TipRanks, S58 stock has a Moderate Buy rating based on three Buy and two Hold recommendations. The average price forecast is S$3.04, which implies an upside of 21% from the current trading levels.
Conclusion
Analysts are bullish on both Keppel and SATS and expect good upside potential of more than 20% in their share prices.
