“The target price translates to 11.1% upside (total return of 15.0% if including the 3.9% yield) over ST Engineering’s last close price of $4.14, which is at 21.1x FY2023 P/E, or 0.1 standard deviation below its historical average forward PE of 21.3x,” he adds.
UOB Kay Hian has re-initiated coverage on Singapore Technologies Engineering (ST Engineering) with a “buy” recommendation and a target price of $4.60.
“Our target price implies 23.5x FY2023 P/E, or 1.3 standard deviation above its historical average. This is plausible as ST Engineering’s strong orderbook provides good visibility for growth in the medium term,” writes analyst Roy Chen.
