ST Engineering (SGGKF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on February 28. Analyst Roy Chen from UOB Kay Hian maintained a Buy rating on the stock and has a S$5.55 price target.
Roy Chen has given his Buy rating due to a combination of factors including ST Engineering’s robust financial performance and promising growth outlook. The company reported a core net profit of S$681 million for 2024, which was a 23% increase year-over-year and slightly exceeded expectations. This positive performance was attributed to better-than-expected margins in key segments such as Commercial Aerospace (CA) and Urban Solutions & Satcom (USS).
Additionally, ST Engineering’s order book reached a record high of S$28.5 billion by the end of 2024, providing strong visibility for future growth. The company also declared a higher dividend for the fourth quarter of 2024, reflecting its confidence in sustained profitability. These factors, combined with the company’s strategic positioning across diverse sectors, underpin Roy Chen’s optimistic outlook and Buy recommendation for ST Engineering’s stock.
Chen covers the Industrials sector, focusing on stocks such as SIA Engineering Co, ST Engineering, and SIA – Singapore Airlines. According to TipRanks, Chen has an average return of 5.9% and a 62.07% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a S$6.00 price target.