According to Jaiswal, ST Engineering will see potential upside from its commercial aerospace segment, on the back of a recovery in global aviation traffic.
RHB Bank Singapore's Shekhar Jaiswal continues to call ST Engineering (SGX:S63
) a "buy", citing the defence and engineering conglomerate's combination of defensive yield and strong earnings growth, which makes this a "special investment opportunity".
However, because of revised financing costs assumptions, which will therefore weigh down earnings forecast slightly by 2%, Jaiswal, in his May 9 note, has trimmed his target price from $4.10 to $4.05.
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