0332 GMT - Singapore Technologies Engineering's share price is set to continue outperforming the FTSE Straits Times Index, RHB Singapore research analyst Shekhar Jaiswal writes in a note. The engineering and technology group remains well positioned to post a profit CAGR of 15% and steady dividends over 2023-2026, the analyst says. Its earnings growth will be supported by strong demand for aviation maintenance, repair and overhaul services and a potential recovery in the urban solution and satcom segment, the analyst adds. With about 39% of the company's debt exposed to floating interest rates, RHB expects further earnings tailwind from expected interest-rate cuts. RHB has a buy rating on the stock and a target price of S$5.32. Shares are 0.2% higher at S$4.65. (amanda.lee@wsj.com)
(END) Dow Jones Newswires
September 17, 2024 23:32 ET (03:32 GMT)
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