In a report released today, Jason Sum from DBS maintained a Buy rating on ST Engineering, with a price target of S$10.20.
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Jason Sum has given his Buy rating due to a combination of factors including stronger-than-expected profitability and healthy cash generation. ST Engineering’s core net profit exceeded market expectations on the back of margin gains in Commercial Aerospace and solid Defence & Public Security revenue growth, while the group also delivered higher operating margins and maintained dividends in line with guidance.
He also highlights the enlarged order backlog and supportive industry dynamics across defence and aerospace as key pillars of his positive view. The sizeable pipeline of international defence contracts, resilient MRO demand amid ongoing supply chain constraints, and limited exposure to current engine supply issues collectively underpin confidence in earnings visibility into 2026 and justify his Buy call and target price.