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Morgan Stanley initiates coverage on Singapore Technologies Engineering with positive outlook
Morgan Stanley has initiated coverage on Singapore Technologies Engineering (STE) with an Overweight rating and a target price of SGD8.00, forecasting an 8% CAGR in defense revenue from 2024 to 2029. The firm anticipates growth driven by international sales and increased defense spending amid geopolitical tensions, particularly from NATO countries. However, risks such as potential cuts in defense budgets and overexpansion in MRO capacity could impact this outlook, with the upcoming NATO Summit seen as a potential catalyst for further investment clarity.
soft start expected for singapore stock market amid global uncertainties
The Singapore stock market ended its three-day winning streak, with the Straits Times Index dropping 21.10 points to close at 3,799.93. Losses in property and industrial sectors were offset by gains in trusts, while global markets showed weakness ahead of the Federal Reserve's interest rate decision. Wall Street's decline was driven by a pullback in technology stocks, and oil prices fell amid concerns over global demand and potential oversupply.
Founded in 1984, Jardine Matheson Holdings Limited operates across various sectors, including automotive, financial services, and property, with a secondary listing on the Singapore Stock Exchange. In Singapore, notable large-cap stocks include DBS Group Holdings, OCBC, and Singtel, with market capitalizations exceeding S$10 billion, reflecting their stability and maturity in the market.
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