The company plans to pay an interim dividend of four cents per share.
"Strong contract win momentum is expected to continue, as management is actively pursuing US$11 billion worth of international defence contracts and $6 billion worth of smart mobility projects in the next two years," says Roy Chen of UOB Kay Hian.
With these prospects, Chen has raised his core earnings forecast by 1-7% in FY2026-28, suggesting 17.6% core earnings CAGR over these three years. From an earlier target price of $10.86, Chen now figures that this stock is worth $11.75, based on 30x FY2027 earnings, which is 3 sd above ST Engineering's historical mean PE of 21x.
Krishna Guha of Maybank Securities has kept his "buy" call and price target of $12.50. He notes that the 1QFY2026 trajectories are tracking his full-year estimates.
As such, he is leaving his sum of the parts-based target price unchanged.
"ST Engineering provides strong earnings visibility and exposure to structural growth drivers such as defence, urban solutions and AI adoption," he adds.
Shekhar Jaiswal of RHB Bank Singapore is similarly bullish. "Our outlook remains upbeat, as the Middle East conflict's direct financial impact is not material, while ST Engineering's diversified portfolio, international defence business momentum and multi‑year aviation MRO demand runway underpins its resilience," says Jaiswal, whose target price is $12.30.
