DBS analyst Jason Sum has reiterated their bullish stance on SGGKF stock, giving a Buy rating on March 31.
Jason Sum’s rating is based on ST Engineering’s strategic positioning and growth potential across several key sectors. The company is well-aligned with global trends in digitalization, urbanization, sustainability, and security, establishing itself as a leader in aerospace, defense, and urban solutions. This is achieved through a combination of deep engineering expertise and a proactive mergers and acquisitions strategy.
ST Engineering’s record order backlog of SGD28.5 billion as of December 2024 provides strong earnings visibility, with expectations of a 15-20% compound annual growth rate in core net earnings from FY24 to FY26. The company’s ability to expand capacity and accelerate project deliveries, coupled with improving operating margins, positions it for significant growth. Additionally, the rising demand for defense and smart city solutions, driven by increased global spending and strategic groundwork, suggests potential earnings outperformance. Consequently, Jason Sum has raised the price target to SGD7.50, maintaining a Buy rating.
Sum covers the Industrials sector, focusing on stocks such as ST Engineering, GE Aerospace, and Boeing. According to TipRanks, Sum has an average return of 5.5% and a 51.06% success rate on recommended stocks.
In another report released on March 31, Morgan Stanley also initiated coverage with a Buy rating on the stock with a S$8.00 price target.