Wednesday, October 8th, 2025

ST Engineering 2025 Outlook: Defence Growth, Valuation, and Investor Guidance (SGX: STEG.SI)

Broker Name: OCBC Investment Research
Date of Report: 7 October 2025
Excerpt from OCBC Investment Research report.

Report Summary

  • ST Engineering (STE) is well-positioned for growth, driven by strong global defence spending and successful portfolio rationalisation, including divestments to focus on core businesses.
  • While earnings growth outlook remains visible, current valuations are seen as stretched, prompting a downgrade to HOLD with a revised fair value of SGD9.03. Investors are advised to accumulate on price pullbacks.
above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Investment Research can be the first to access the full report from the OCBC Investment Research website : https://www.ocbc.com/group/ocbc-investment-research

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