Singapore Technologies Engineering is likely entering a multi-year earnings upcycle, CGS International analysts say in a research report.
The technology, defense and engineering group expects 2024-2029 net profit CAGR to exceed revenue CAGR by up to 5 percentage points.
The brokerage's analysts cite a better operating leverage and an improved sales mix for their forecast.
The Singapore-listed company's 2029 defense revenue target of S$7.5 billion was also a positive surprise, the brokerage says, adding that it sees this as a reflection of the company's confidence in its growth prospects.
CGS International raises the stock's target price to S$7.40 from S$5.60 with an unchanged add rating.
Shares are 2.2% higher at S$6.52.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。