Brokers' take

ST Engineering | Buy Target price: S$4.15 March 12 close: S$3.43 Maybank Kim Eng, March 12

After three lacklustre years due to tough market conditions and restructuring costs, growth catalysts are falling in place. Aerospace MRO (Maintenance, Repair & Overhaul) is witnessing green shoots from the recovery in global trade, some capacity rationalisation and growth in the global aircraft fleet while recent acquisitions hold growth promise.

Land Systems, unshackled from the prior drag of China units, holds growth promise in the autonomous mobile robot market with its Aethon (Unlisted) acquisition. Prospects for Marine remain challenging in the near-term but cost rationalisation has been largely completed and an oil price recovery may alleviate the situation sooner than expected.