In a report released today, Lim Siew Khee from CGS International downgraded ST Engineering to a Hold, with a price target of S$11.05.
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Lim Siew Khee has given his Hold rating due to a combination of factors related to valuation, earnings visibility, and demand risks. The analyst notes that while ST Engineering has strengthened its position in the Middle East with sizeable defence and MRO contracts, these wins are already factored into the current share price, which trades at a premium P/E versus global defence peers.
At about 30–35x forward earnings, the stock appears to fully reflect the projected mid‑teens core EPS growth over FY26–27, leaving limited upside in the near term. In addition, order conversion in international defence can be uneven and the commercial aerospace segment faces potential softness as airlines may delay non-essential MRO spending, leading the analyst to recommend investors pause and wait for a better risk‑reward entry point.
In another report released on March 31, TipRanks – xAI also reiterated a Hold rating on the stock with a S$12.00 price target.