Stock Buy Call: SIA Engg by Goldman Sachs

SIA Engineering Co Ltd may gain after Goldman Sachs started covering the stock with a "buy" rating and a 12-month price target of 4.40 sgd, citing its attractive valuation. "While we forecast earnings to grow at a solid CAGR (compounded annual growth rate) of 13 pct over 2006 to 2009, we believe the stock's key attraction is its low valuation," Goldman Sachs said in a note to clients. Yesterday, SIA Engineering closed up 0.12 sgd at 3.64.