“Meanwhile, for Singapore Technologies Engineering’s defence and public security (DPS) division we note that our aerospace and defence team expects global defence spending as a per cent of gross domestic product (GDP) to be relatively flat with the likes of Singapore spending 2.7% of GDP,” adds Hilado.
Citi Research analyst Luis Hilado has kept his “buy” call on Singapore Technologies Engineering (SGX:S63
) (ST Eng) with an unchanged target price of $5.12 in anticipation of a healthy 9MFY2024 ended September business update.
Hilado notes in his Oct 16 report that going into the business update and the 4QFY2024, the group has scored a number of contracts not only in the maintenance, repair and overhaul (MRO) space for its commercial aerospace (CA) business, but also in its wholly-owned urban solutions and Satcom (USS) subsidiary, Transcore.
