ST Engg - ST Engineering upgraded to Hold by UOB KayHian

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

UOB KayHian upgrades ST Engineering (S63.SG) to Hold from Sell, lifts target price to $2.98 from $2.94, citing “creditable” 14.1% on-year growth in 2Q10 earnings to S$123.9 million, management’s guidance for higher FY10 revenue, pretax profit, writes Dow Jones.



But UOB KayHian notes full-scale improvement in aerospace business unlikely until late next year as airlines delaying maintenance work, while older planes parked in desert not expected to be redeployed.

Broker says recent win of waste management contract in Brunei, contract to design passenger rail information system in Brazil encouraging; “further inroads into these markets will expand STE’s reach and thus warrants an upgrade.”



Shares off 0.6% at $3.24.