OCBC Investment Research raised its target price for Singapore Technologies Engineering to $3.50 from $3.32 and kept its buy rating, citing the company's strong contract wins.
Shares of ST Engineering were 0.3% lower at $3.18, but have gained 18% since the start of the year.
ST Engineering said its aerospace arm had secured about US$540 million ($675.5 million) worth of contracts in the first quarter. This lifts the company's total orders to $1.5 billion for the period, said OCBC.
The broker said ST Engineering’s $880 million contract win from the Royal Navy of Oman should restore investors’ confidence in its defence sales, especially after recent problems its unit ST Kinetics had faced in India.
No comments:
Post a Comment