This follows "healthy operating trends" reported by the company for its 1HFY2023 ended June. "We are encouraged by management’s efforts to mitigate risk factors, including cost rationalisation on underperforming assets, capital recycling to manage gearing levels, also driving operational leverage and margin improvement in core businesses."
OCBC Securities has maintained its "buy" call on ST Engineering but with a raised fair value of $4.45 from $4.20.
In its Sept 15 note, OCBC notes that the defence and engineering firm's 21% gain year to date has outperformed the broader Straits Times Index by 16%.
