Shekhar Jaiswal of RHB Bank Singapore has kept his "buy" call and $5.20 target price on Singapore Technologies Engineering ahead of its FY2024 earnings announcement.
In his Feb 18 note, Jaiswal notes that the company has announced $4.3 billion worth of new orders won in 4QFY2024.
"This winning streak has continued in 2025, as it has clinched aircraft engine maintenance, repair, and overhaul (MRO) contracts with two major Middle East operators," he adds.
Jaiswal estimates that the company will report 2HFY2024 earnings of $343 million, up 12.2% y-o-y and further growth will be supported by the commercial aerospace segment.
Also, the company's urban solutions segment will finally see a turnaround in its satellite business, while "sustained" delivery of defence contracts will help as well. "Our earnings outlook remains positive, with an expectation of a CAGR of around 15% for FY2023-FY2026," says Jaiswal.
ST Engineering shares gained 1.6% to change hands at $5.08 - a new record high.
