RHB Group Research analyst Shekar Jaiswal remains optimistic on ST Engineering’s earnings recovery for FY2021 ending December, despite the company's unsuccessful bid for Cubic Corp.

The analyst retained his ‘buy’ rating for the counter, with a higher target price of $4.50 from $4.25 previously on the back of his valuation basis being rolled forward from 2021 to blended forward earnings, book value and EBITDA.

In a research note dated April 12, Jaiswal states ST Engineering’s earnings recovery in 2021 will be aided by normalisation of order delivery across key business segments.

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