Singapore Technologies Engineering shares hit its highest level in 50 months after it reported an 18% jump in 1QFY2024 revenue to $2.7 billion.
ST Engineering shares closed at $4.20 on May 14, up 4.22% from the previous close of $4.03.
The growth was driven especially so by its commercial aerospace business segment, which jumped 32% y-o-y to $1.2 billion for the three months ended March.
Its other key business segment of defence and public security enjoyed growth as well, up 14% y-o-y to $1.1 billion.
Urban solutions and satcom, meanwhile, saw a 1% y-o-y dip to $429 million.
"We believe the revenue momentum exhibited by STE in its 1Q24 update will lead to consensus upgrades," writes Citi Research's Luis Hilado in his May 13 note, where he upgraded his call from "neutral" to "buy" along with a higher target price of $4.62 from $3.76 previously.
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The company is also maintaining its quarterly payout of 4 cents.
