UOB ups ST Engineering target price

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD

Research House: UOB KayHian

Price Call: BUY

Target Price: 3.78

UOB Kay Hian raised its target price for Singapore Technologies Engineering to $3.78 from $3.34 and kept its 'buy' rating, citing continued order wins.

By 12:25 p.m., ST Engineering shares were 1.8% lower at $3.21 and have gained 19.3% since the start of the year, compared to the Straits Times Index's 12.5% rise.

In the second quarter, ST Engineering secured $1.5 billion worth of new contracts, 100% higher than the previous quarter, suggesting its order book in April-June will likely surpass $12.3 billion, which was achieved at end-2011.

Despite this, ST Engineering is trading at 0.81 times its orderbook, a discount to its 5-year average of 0.88 times, said UOB.