Weak share price for ST Engineering shows buying opportunity: report
ST Engineering is still resilient due to global aviation traffic.
Analyst, RHB, said there should be a “buy” call on ST Engineering despite its weak share price as the firm underperformed in the Straits Times Index by 5.4%.
“Share price weakness offers an opportunity to accumulate the stock,” said RHB.
ST Engineering, with a market price of $4.60, has no changes in its growth and will remain resilient due to revival of air travel, growing demand for smart-city solutions, and increasing global defence expenditure, said RHB.
“The price correction was caused by a lower than expected in the first half of 2022 earnings and concerns around its growing debt levels in a rising interest rate environment,” said RHB.