0703 GMT - Singapore Technologies Engineering's core net earnings are expected to see a 15%-20% CAGR over 2024-2026, DBS Group Research's Jason Sum says in a research report. Drivers are capacity expansion and faster cadence of project deliveries across all business segments, the analyst says. Also, ST Engineering's operating margins should strengthen as the company benefits mostly from better pricing, increased operational leverage and productivity gains, the analyst says. Likely higher defence spending in Europe and the Middle East offers upside to ST Engineering's international defence growth trajectory. DBS raises the stock's target price to S$7.50 from S$6.00 with an unchanged buy rating. Shares are 1.0% lower at S$6.68. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
April 04, 2025 03:03 ET (07:03 GMT)
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