SATS LTD. may face earnings volatility over the next one to two years stemming from global cargo demand becoming more sensitive to escalating trade tensions, CGS International analysts Tay Wee Kuang and Lim Siew Khee say in a note.

Management noted some knee-jerk order cancellations in January as the U.S. mulled the repeal of the de minimis provision for low-value parcels from China, they say.

The brokerage cuts its FY 2025-FY 2027 EPS forecasts for the air-cargo handler by 4.1%-7.5% amid an uncertain macroeconomic outlook. It also lowers its target to S$4.35 from S$4.40 while maintaining an add rating.

SATS drops 4% at 11 am, Feb 25th.