"The recent share price pullback appears driven by profit-taking after its strong sector outperformance, which is a trend also observed among other global defence names as some investors trimmed positions," says OCBC in its Aug 29 note.
ST Engineering shares dropped by some 14% after its 1HFY2025 results a fortnight ago.
Even so, OCBC Investment Research remains bullish on this stock, keeping its "buy" call and target price as the company's fundamentals remain and its year to date share price gain of some 60% is deemed to have more legs.
