ST Engineering rebounds 5% after drifting over past month; Goldman initiates coverage
It has fallen 8.6% from S$11.15 on Aug 18 to S$10.19 on Sep 17
ST Engineering's stock price rebounded 5% on Friday (Sep 18) after slipping 8.6% over the past month, following Goldman Sachs' recommendation to "buy" the stock. The technology, defence and engineering group's shares opened at S$10.70, up S$0.51 from the previous close. By noon, the price had settled at S$10.56, reflecting a 3.6% gain.
ST Engineering's share price has been on a downward trend since August, when it fell from S$11.15 to S$10.19, a 8.6% decrease. Analyst Herbert Lu at Goldman Sachs set a target price of S$13.20, aligning with 11 other analysts who recommended "hold" and one who suggested "sell." The consensus target price is S$11.77. Morningstar, however, advised a "hold" rating with a target price of S$11.10, citing a lag in defence contract wins against expectations, though international contracts are strong.
ST Engineering reported a 27.1% increase in first-half net profit to S$512.1 million in August, driven by cost savings and performance across all business segments. The company secured S$2.9 billion in new contracts in the Q2 2026, with significant wins in defence, public security, and urban solutions sectors, including contracts for counter-drone solutions and video intelligence systems.
The land systems business received orders from international customers for ammunition, assault rifles, and ground support equipment. ST Engineering also secured a S$750 million rail services contract for a metro extension in Taiwan, maintaining its goal of S$11 billion in international defence contracts over the next 18 to 24 months.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
