ST Engineering has announced a significant increase in its order wins for the first quarter of 2025, marking a 48% rise compared to the same period last year and a 7% increase from the previous quarter. This robust performance has led analysts to reiterate a “buy” recommendation and raise the target price to S$8.30, reflecting an 11% upside potential and a yield of approximately 2%.
The company’s joint venture with Airbus, Elbe Flugzeugwerke, has entered into a partnership with Confity Capital Partners to supply multiple Airbus A330 passenger-to-freighter aircraft to India. This strategic move is expected to bolster ST Engineering’s long-term earnings, aligning with its growth targets for the 2024–2029 period.
The upward revision of the target price is attributed to the ongoing momentum in order wins and the potential for further earnings growth. Analyst Shekhar Jaiswal noted, “We raise our forward target multiples to capture the ongoing strong order wins momentum and the upside risks to our longer-term earnings estimates.”
This development underscores ST Engineering’s strategic positioning in the aerospace sector and its ability to capitalise on emerging market opportunities. As the company continues to expand its footprint, the increased target price reflects confidence in its future growth trajectory.
Looking ahead, ST Engineering’s focus on innovation and strategic partnerships is expected to drive further success, positioning the company as a key player in the global aerospace market.
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