SINGAPORE (April 12): DBS Vickers Securities is reiterating its “buy” recommendation on ST Engineering with a higher $3.65 target price from $3.40 previously.

DBS says ST Engineering is likely to get more orders for its electronics and aerospace units.

The engineering and defence contractor says orders remain "robust" despite some slowdown in marine and land systems businesses last year.

The electronics unit will likely get orders from Singapore’s investments to become a 'smart city' and the aerospace division will benefit from its focus on growth areas, DBS says.

The house notes that ST Engineering shares have outperformed the benchmark Straits Times Index, which it attributes to its “strong defensive nature, healthy balance sheet and secure dividend promise in an environment of uncertainty and volatility in the equity market”.

At 9.41am, ST Engineering shares are down 0.31% at $3.21.