Brokers' take

ST Engineering > Buy (maintained) RHB Research Institute, July 5 July 5 close: S$4.23 Target price: S$4.45

ON AN uncertain macroeconomic outlook, ST Engineering outperformed the Straits Times Index by 12 per cent in the year up to July 3. Its performance is down to double-digit profit compound annual growth rate outlook, diversified business, record-high order book with two years of revenue visibility, positive FCF generation capability, and relatively high dividend yield.

STE remains our country top pick, as we expect the stock to keep getting re-rated amidst completion of acquisitions and continuing order wins.