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Switch out of SIA Engineering into ST Engineering, recommends CIMB

Michelle Zhu
Michelle Zhu6/28/2017 10:47 AM GMT+08  • 2 min read
Switch out of SIA Engineering into ST Engineering, recommends CIMB
SINGAPORE (June 28): CIMB Research is downgrading SIA Engineering from "hold" to “reduce” with a lower price target of $3.86 in view of the stock’s expensive valuations and limited catalysts.
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SINGAPORE (June 28): CIMB Research is downgrading SIA Engineering from "hold" to “reduce” with a lower price target of $3.86 in view of the stock’s expensive valuations and limited catalysts.

CIMB also recommends switching out of SIA Engineering into ST Engineering given to the latter’s structural “sweet spot” of smart nations and more defensive earnings profile with diversified business segments.

In a Tuesday report, analyst Lim Siew Khee says SIA’s divestment of its parent stake in SIA Engineering is unlikely as there are other avenues for the group to manage its balance sheet.

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