Singapore Technologies Engineering shares jumped to a new record high on heavy volume, extending a significant gain already seen last Friday.
It reached an intra-day high of $5.91 before easing slightly to close at $5.87 on March 3.
The company's shares closed at $5.04 on Feb 26, marking a gain of more than 16% since then.
The gain by ST Engineering shares took place on the same day when various European defence stocks surged more than 10%, as investors bet that European countries will further ramp up defence spending with the recognition that security provided by the US cannot be assured.
On Feb 27, the company reported better FY2024 earnings and also increased its final quarterly dividend to 5 cents instead of the usual 4 cents per share.
ST Engineering reported better operating efficiency and guided for faster growth this current year.
See also: ST Engineering FY2024 earnings up 19.7% y-o-y; ups final dividend to 5 cents
Krishna Guha of Maybank Securities, in his Feb 27 note, calls the FY2024 results a "strong finish". Besides his upgrade from "hold" to "buy", he has increased his target price to $5.70 from $4.70.
Paul Chew of PhillipCapital calls the company "firing and flying on all cylinders", as he raises his target price from $5 to $6.10.
