ST Engg - ST Engineering cut to Outperform from Buy by CLSA

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD
Research House: CLSA

CLSA downgrades ST Engineering (S63.SG) to Outperform from Buy on limited upside to its unchanged $3.67 target price, says Dow Jones. But remains upbeat on prospects.



“The outlook for aerospace in particular appears sanguine for the remainder of FY10 as well as for FY11, a fact supported by a sharp decline in provisioning relative to operating earnings,” says CLSA.

Research house adds $11.3 billion order backlog offers 3.5 years of earnings visibility “in an environment characterised by uncertainty over the US economic outlook”. Shares off 0.6% at $3.24.