SES SA Update and “Buy” Reiteration “The sky is not the limit”

SES SA 2012 results were on top of expectations, and the management is guiding expectations higher for 2013, particularly, due to declining Capex and increasing free cash flow, and that not only for 2013, but also for 2014 and 2015. The proposed increased dividend comes in at EUR 0.97 (versus EUR 0.88 in 2011) and is as expected, and will offer investors a high yield of 4.2% annually. This high yielding stock, combined with solid top-line growth ad earnings growth, and a visibly declining capital expenditure program for the next three years, makes SES shares attractive for investors in our opinion.

SES SA, the growing global industry leader in the global satellite and communications market is in our opinion a good investment for global institutional investors, looking to achieve an above average total return with minimal investment risk, and with limited management execution risk. Our 12-month price target for SES SA shares is EUR 30.

022713 CGI SES Update Buy