Singapore Stock Market News

ST Engineering - Proxy To US Recovery

StockFanatic
Publish date: Thu, 12 Jun 2014, 01:08 PM
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Various economic indicators suggest that the US economic recovery is gathering momentum. STE derives 26% of its revenue from the US and is thus a proxy to the US recovery. Recent investments in ship repair and aerospace are likely to yield dividends in late 2014 and 2015.

The stock has underperformed the FSSTI ytd, but this is likely to reverse. Maintain BUY. Target price: S$4.50.
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