Singapore, Jan 16, 2026, 15:35 (SGT) — Regular session underway.
- ST Engineering shares hovered near S$9.54 in afternoon trading, showing little movement
- DBS lifted its target price to S$10.20, maintaining a “buy” rating
- Attention turns to aerospace maintenance demand alongside clarity in defence spending
Shares of Singapore Technologies Engineering (ST Engineering) held steady near S$9.54 on Friday afternoon. The stock has climbed to new highs following a recent rally.
The stock has surged this month and now trades close to the peak of its recent daily range, closing Thursday at S$9.53.
DBS Group Research was the latest to act, bumping its target price for ST Engineering to S$10.20 from S$9.40 while sticking with a “buy” rating. The Business Times
DBS analysts Jason Sum and Tabitha Foo recommended investors shift focus from Asia-Pacific airlines to upstream aviation service providers and defence-related stocks with more stable earnings. They highlighted ST Engineering and SATS as likely winners, noting that delays in aircraft deliveries are forcing older fleets to stay in service longer, boosting demand for maintenance, repair and overhaul (MRO) services.
This is significant for ST Engineering, given aerospace is a major revenue driver for the company. It has carved out a role across the aviation lifecycle, spanning heavy maintenance to freighter conversions. This comes as spare-parts shortages and engine durability concerns push up shop visit demand.
The note also highlighted defence spending as remaining on a “structurally higher trajectory” worldwide, boosting both order flow and revenue clarity for defence suppliers — a factor that’s helped lift valuations for defence stocks. The Business Times
ST Engineering’s stock has reacted sharply to changes in sentiment around its two main areas — aerospace services and defence/public security. Investors are closely tracking how well the company turns its project pipeline into actual revenue as contracts progress from award to delivery.
That said, the downside is clear enough. If passenger and cargo demand slow more than expected, aftermarket work could take a hit. Margins might get squeezed even if volumes climb, thanks to stiffer competition or rising costs in MRO. On the defense front, budget growth may slow after catch-up cycles, with procurement timing shifting between quarters.
Traders will be watching closely for new orders or product announcements linked to the Singapore Airshow, scheduled for Feb. 3–8. Aerospace and defense suppliers typically reveal key programs and partnerships during the event.
