CIMB sees buying opportunity in ST Engineering, backed by better prospects

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

Research House: CIMB

Price Call: BUY

Target Price: 3.93

SINGAPORE (June 17): The recent drop in shares of ST Engineering is seen as a buying opportunity, as the company is set to enjoy improving prospects across its various business units this coming year and beyond, says CIMB.

A long-time favourite of investors hankering after a defensive play, ST Engineering is now trading below its seven-year mean of 19 times PE.

"Potential catalysts include sizeable contract wins in electronics and stronger MRO demand," writes CIMB analyst Lim Siew Khee in a June 16 note, where she maintains her "add" call and target price of $3.93.