Singapore, Jan 23, 2026, 15:10 SGT — Regular session
- ST Engineering shares slipped 0.3% to S$9.35 by mid-afternoon
- Company expands nacelle MRO services for LOT Polish Airlines, focusing on predictive maintenance
- OCBC raises its target price to S$10.90 as investors turn their focus to February results for direction
Shares of Singapore Technologies Engineering Ltd (ST Engineering) dipped 0.3% to S$9.35 as of 3:10 p.m. in Singapore on Friday. The stock fluctuated within a range of S$9.32 to S$9.46. 1
The move follows a fresh broker upgrade and a string of company updates keeping ST Engineering’s defence and aerospace units in focus. OCBC Group Research analyst Chu Peng lifted her target price to S$10.90 from S$9.80 on Jan. 21, noting that defence stocks “continue to find favour in the current global environment.” She values ST Engineering at about 29.9 times forward earnings, highlighting an order book nearing S$28.5 billion. 2
On Thursday, ST Engineering announced a five-year nacelle maintenance, repair, and overhaul (MRO) contract with LOT Polish Airlines, covering the carrier’s 15 Boeing 787 Dreamliners. The nacelle, which encases an aircraft engine, will now undergo a structured refurbishment programme featuring predictive maintenance—using data to cut down on unexpected removals. “This agreement reflects LOT Polish Airlines’ continued trust and confidence in us to keep their Boeing 787 Dreamliner fleet flying safely,” said Henrik Scholtfeldt, head of global nacelle MRO at ST Engineering. 3
The contract value remained undisclosed. ST Engineering shares ended Thursday at S$9.38, slipping 2.0%, according to The Edge Singapore. The report noted the stock has nearly doubled over the last year. 4
At the DIMDEX exhibition in Doha, ST Engineering took the opportunity to unveil its amphibious Terrex s5 infantry fighting vehicle, according to Janes. A senior engineer told Janes the vehicle can handle operations up to Sea State 3, referring to wave conditions at sea. 5
Another filing on Thursday revealed ST Engineering awarded 17,759 shares under its Restricted Share Plan 2020, priced at S$9.38 each. One-third of these shares will vest between 2026 and 2028. Notably, no directors received grants. 6
Traders are now focused on whether the steady stream of aerospace services and overseas defence deals will boost margins, not just top-line revenue. The specifics of each contract are crucial, particularly as investors try to gauge how much recurring business underpins these announcements.
However, with the stock’s recent rerating, expectations are now elevated. According to Investing.com’s analyst consensus, the average 12-month target from 15 analysts stands at roughly S$9.23, while the lowest estimate is S$7.28. That tight range means there’s little wiggle room if execution falters or order flow weakens. 7
Deal flow and broker reactions will continue to move the tape in the short term, but investors are focusing more on the upcoming earnings reports for clearer figures and fresh guidance.
The next major event on the calendar is earnings: Investing.com pins ST Engineering’s upcoming report for Feb. 26. Investors want clarity on 2026 demand projections, the strength of the order book, and how the aerospace and defense segments are performing. 8
