ST Engg - ST Engineering started at Buy with $4.00 target by RBS

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

Royal Bank of Scotland starts ST Engineering (S63.SG) at Buy with $4.00 target price. Says company offers relatively low-risk exposure to growth in air travel industry as demand for its maintenance, repair, overhaul services will increase as flights increase, says Dow Jones.

“While the airlines may have already seen most of the fast recovery in passenger and cargo demand from the depression that followed the 2008 financial crisis, the MRO industry has only just begun to recover,” says RBS.



Rsearch house expects company’s share in MRO market to increase to 4.0% by 2013 from 3.5% now, resulting in EPS CAGR of 7.2% over 2010-2013.



Shares flat at $3.40.