Jaiswal notes that this growth is supported by a strong demand for aviation maintenance, repair and overhaul (MRO) services and possible recovery in the Urban Solution and Satcom (USS) segment. The fall in interest rate provides further earning tailwinds as approximately 39% of its debt is exposed to floating interest rates, Jaiswal adds.
RHB Bank Singapore analyst Shekhar Jaiswal has maintained his “buy” call on Singapore Technologies Engineering (SGX:S63
) (ST Engineering) while upgrading his target price from $5 to $5.32, representing a 14.5% increase.
ST Engineering’s share price has outperformed the Straits Times Index (STI) and Jaiswal expects this to continue as ST Engineering remains well positioned to deliver a 15% compounded annual growth rate (CAGR) on its profit and steady dividends between FY2023 to FY2026.
