ST Engineering - RHB Invest 2023-11-30: Accumulate During Current Share Price Weakness

• The 7% correction in ST Engineering's share price since 12 Oct is an opportunity to accumulate ST Engineering – in our view, fundamentally, nothing has changed in terms of its outlook.
• - Read this at SGinvestors.io -
• With 19% profit CAGR during 2022-2025F and defensive yields, we believe ST Engineering should be part of every investor’s portfolio.

Strong earnings growth outlook

• ST Engineering (SGX:S63)'s strong earnings growth outlook will continue to be supported by continued strength in commercial aerospace (CA) and sharp improvements in the urban solutions & satellite communications (USS) segments.
  • - Read this at SGinvestors.io -
  • The rightsizing exercise and earnings contribution from its TransCore acquisition should support earnings growth for USS.
  • The defence and public security (DPS) business should see earnings supported by the gradual delivery of the orderbook.
• For 2022-2025F, we expect ST Engineering's CA, USS, and DPS segments to deliver 18%, 63%, and 8% EBIT CAGR.

Debt situation should gradually improve.

• Read more at SGinvestors.io.

Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Read also RHB's most recent report:
2025-02-18 ST Engineering - Order Wins To Support Growth Beyond 2024.

Previous report by RHB:
2025-01-21 ST Engineering - Remaining Positive For 2025; Reiterate BUY.

Price targets by 6 other brokers at ST Engineering Target Prices.

Listing of research reports at ST Engineering Analyst Reports.

Relevant links:
ST Engineering Share Price History,
ST Engineering Announcements,
ST Engineering Dividend Payout Dates & Corporate Actions,
ST Engineering News