“We expect ST Engineering to deliver [an] 18% profit compound annual growth rate (CAGR) in FY2022 to FY2025, and to continue paying 16 cents of dividends each year, while reducing its debt levels,” writes the analyst.
RHB Bank Singapore analyst Sheikhar Jaiswal is keeping “buy” on Singapore Technologies Engineering (SGX:S63
) (ST Engineering) (SGX:S63) as the company announced the building of a new airframe maintenance facility at Singapore Changi Airport on Sept 23. The analyst has also kept his target price unchanged at $4.50. This includes a 6% environmental, social and governance (ESG) premium over the fair value (FV) of $4.25, based on RHB’s in-house methodology.
In his report dated Sept 25, Jaiswal notes that the facility’s expansion of four hangar bays looks to support the earnings of ST Engineering’s commercial aerospace (CA) segment as international aviation traffic continues to pick up .
