Stock Upgraded: ST Engg target price rise to 3.4 by OCBC Investment Research

OCBC Investment Research says it has raised its target price for ST Engineering Ltd to 3.40 sgd from 3.20 sgd. OCBC has a "buy" rating for the stock. "Putting the first half behind us, we are confident that ST Engineering will produce a strong second half, coupled with positive earnings momentum going into 2007," OCBC analyst Kelly Chia said in a note. "Although [its] share price has risen almost 8 pct since Sept 22, ST Engineering's attractive dividend pay-out ratio and long-term earnings visibility puts the share price in a favorable position for [a] further run-up," Chia said. OCBC said that the industrial conglomerate's improving operational efficiency, with the string of acquisitions it has made (the most recent being 80 pct of of MAK Technologies Inc) and its exciting opportunities would would allow for good earnings momentum across all business segments in future. At 11.03 am, ST Engineering was 0.05 sgd or 1.68 pct lower at 2.93, on volume of 578,000 shares.