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ST Engineering Receives Buy Rating Amid Strong Financial Performance and Growth Prospects

ST Engineering Receives Buy Rating Amid Strong Financial Performance and Growth Prospects

ST Engineering (SGGKFResearch Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Kenneth TAN from CGS-CIMB reiterated a Buy rating on the stock and has a S$5.30 price target.

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Kenneth TAN has given his Buy rating due to a combination of factors contributing to ST Engineering’s strong financial performance and growth potential. The company reported impressive fourth-quarter order wins totaling S$4.3 billion, marking a significant year-over-year increase, propelled by robust performance in its Defence and Aerospace units. This strong order pipeline is expected to enhance ST Engineering’s operational visibility and revenue growth in the coming quarters.
Furthermore, ST Engineering’s second-half net profit is projected to rise by 24% year-over-year, driven by double-digit EBIT growth and reduced finance expenses. The company’s resilience and growth in key segments, such as Defence and Commercial Aerospace, underscore its potential for sustained earnings expansion. As a result, Kenneth TAN maintains a positive outlook with a target price of S$5.30, reflecting confidence in the company’s ability to capitalize on industry tailwinds and deliver shareholder value.

According to TipRanks, TAN is ranked #2002 out of 9370 analysts.

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