CGS-CIMB Research analysts Lim Siew Khee and Kenneth Tan have kept their ‘add’ rating with an unchanged target price of $4.54 for Singapore Technologies Engineering (ST Engineering), citing stronger-than-expected orders and quicker resumption of global travel as rerating catalysts. 

In a Nov 10 note, the analysts say the company recorded healthy 3Q21 order wins of $1.8 billion, a 7% increase y-o-y. This comprises $1.03 billion in Commercial Aerospace (CE), $413 million in Defence & Public Security and $382 million in Urban Solutions & Satellite Communications (USS). 

The order wins in 3Q21 exclude contracts that are commercially sensitive, which the analysts estimate to be as high as $750 million. 

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