ST Engg - ST Engineering raised to Buy by OCBC with $3.66 target

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

OCBC Investment Research upgrades ST Engineering (S63.SG) to Buy from Hold, lifts target price to $3.66 from $3.28, based on 21x FY11 EPS vs 20x blended FY10-FY11 EPS previously, says Dow Jones.



OCBC expects company to benefit from earlier-than-expected recovery in global aviation maintenance, repair, overhaul industry, given surge in passenger aircraft orders at recent airshows.



Research house notes, company has been clinching new contracts in past months, demonstrating “STE’s strong market position and its ability to delivery reliable and innovative solutions.”



Shares off 1.2% at $3.28.