Thursday, October 20, 2011

ST Engineering

ST Engineering: Co. announced that its aerospace arm has secured new maintenance contracts totaling $453m in the whole of 3Q11. This is somewhat higher than the $260m secured in 2Q11 and the $320m secured in 1Q11, and may indicate that momentum in commercial aerospace is picking up.

Kim Eng note that the stock price has been relatively stable in the past mth, and at this level it still provides a healthy div yield of 5.7%. However, house maintain HOLD recommendation as its forward P/E remains at 15.7x. TP of $3.15, offers a 11% upside. CIMB meanwhile maintains O/p with $3.61 TP.

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