"Defence stocks continue to find favour in the current global environment," she says, alluding to the multi-year defence spending upcycle that is taking place across the world.
Chu Peng of OCBC Group Research has raised her target price for Singapore Technologies Engineering from $9.80 to $10.90 to reflect stronger confidence in its earnings growth trajectory.
As one of the few leading defence proxies in this region, ST Engineering, with a third of its business defence-related, is well-positioned for growth, states Chu in her Jan 21 note.
