2024-03-10 06:32:25 ET
Summary
- Singapore Technologies Engineering's fiscal 2023 bottom line surpassed expectations, thanks to strong revenue growth for the Commercial Aerospace segment and the profitability improvement for the Defense & Public Security segment.
- SGGKF's Defense & Public Security segment is likely to benefit from higher defense spending, but positives are priced in with the stock trading at above 1 times PEG multiple.
- A Hold rating for Singapore Technologies Engineering stock is maintained; I have a favorable opinion of its Defense & Public Security segment's prospects, but the stock's valuations are unattractive.
Elevator Pitch
I rate Singapore Technologies Engineering Ltd. ( SGGKF ) [S63:SP] stock as a Hold. On its corporate website, Singapore Technologies Engineering describes itself as a company with a "diverse portfolio of businesses (that) spans the aerospace, smart city, digital solutions, defense and public security segments."...
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Singapore Technologies Engineering Is A Fairly Valued Defense Play