Analysts are upbeat on Singapore Technologies Engineering (ST Engineering) as US domestic airline travel recovers back to pre-Covid-19 levels.

To that end, CGS-CIMB Research and UOB Kay Hian have kept their respective “add” and “buy” calls while also raising target prices. CGS-CIMB now has a target price of $4.41 from $4.00 previously, while UOB Kay Hian has a target price of $4.26 from $4.07 previously.

UOB Kay Hian analyst K Ajith cites data from air travel intelligence company OAG, pointing out that US airlines seat capacity as at June 28 was only 10% lower than pre-pandemic levels. He expects this to grow further as the US had eased travel warnings to 110 countries on June 1, which should boost international capacity.

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