ST Engineering's Long-Term Outlook Looks Robust, Says RHB Research's Analyst
Dow Jones
Nov 19
ST Engineering's long-term outlook remains robust to RHB Research's Shekhar Jaiswal. He cites the Singapore engineering company's record S$32.6 billion orderbook as earnings visibility for around three years.
The analyst expects the effect of ST Engineering's divestment of its stake in Shanghai Technologies Aerospace to be negligible on earnings. The exit from Shanghai Technologies likely sharpens ST's China maintenance, repair, and overhaul segment footprint and supports a pivot towards higher growth and productivity, he says in a note.
"The transaction is incrementally positive and reinforces [the company's] balance sheet and long-term trajectory," he says. RHB Research raises ST's target price to S$9.40 from S$9.10 and maintains a buy rating. The stock is up 0.58% to S$8.65 on Wednesday.
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