Singapore Technologies Engineering, or ST Engineering (SG:S63), is a well-established entity on the SGX, known for its long-standing presence. Analysts are optimistic about the company due to the resurgence of air travel and its successful acquisitions in 2022.
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On TipRanks, S63 stock has a Strong Buy rating with an upside potential of 10.5%.
Based in Singapore, ST Engineering is a technology, defense, and engineering conglomerate that caters to clients across over 100 countries worldwide.
The Optimistic Outlook
The company’s robust order book, which stands at S$23 billion, is impressive, indicating a promising trajectory for top-line growth. ST Engineering has set its sights on achieving a revenue target of S$11 billion by 2026. Additionally, the company’s decision to divest non-core business units and prioritize areas such as aircraft maintenance aligns with its revenue goal and demonstrates a prudent approach.
Following the company’s first-quarter earnings report, analysts have maintained their Buy rating on the stock. RHB Capital’s Shekhar Jaiswal reiterated his Buy rating on the stock 10 days ago. Jaiswal said, “We continue to like ST Engineering for its strong revenue visibility and defensive dividend outlook.” He also anticipates a CAGR of 17% in the company’s profits from FY2022 to FY2025.
Last month, Lim Siew Khee from CGS-CIMB also confirmed his Buy rating on the stock, and he expects the company to report improved earnings in the second half of 2023. His price target of S$4.0 indicates a growth of 9.2% in the share price.
ST Engineering Share Price Target
According to TipRanks’ analyst consensus, S63 stock has a Strong Buy rating based on all three Buy recommendations.
The average price target is S$4.05, which is 10.6% higher than the current price.
Conclusion
ST Engineering’s positive prospects are reinforced by its significant order book value and the resurgence of global travel, lending strong support to its bullish outlook.
