Stock Downgraded: SATS downgraded to neutral by CIMB-GK!

CIMB-GK CIMB-GK Research has trimmed its rating on Singapore Airport Terminal Services Ltd (SATS) to "neutral" from "outperform" as it believes valuations are stretched at current levels after the company posted weaker-than-expected results for the year ended March. "SATS' share price has performed well and we downgrade to 'neutral' on valuations ground. We believe some profit-taking is reasonable," CIMB-GK said in a client note. While SATS' full-year net profit rose 9 pct to 189 mln sgd, it was 7 pct below the market consensus estimate and CIMB-GK's forecast, the brokerage said. Following the dismal performance, CIMB-GK said it has cut its net profit estimate for SATS by 7 pct in the years to March 2007 and March 2008 to 202 mln sgd and 226 mln, respectively. CIMB-GK pegs fair value for the stock at 2.66 sgd. At 9.26 am, SATS was down 0.08 sgd or 3.23 pct at 2.40 with 145,000 shares traded.