ST Engineering Shares Surge on Goldman Sachs' Bullish Call

ST Engineering's share price surged 5% in early trade on Friday, following Goldman Sachs' initiation of coverage with a 'buy' rating. The technology, defense, and engineering group's stock touched S$10.70 within two minutes of the market open, gaining S$0.51 per share.

ST Engineering shares had been drifting downward over the past month, falling 8.6% from S$11.15 on August 18 to S$10.19 on September 17. Goldman Sachs analyst Herbert Lu set a target price of S$13.20 for the stock, which is in line with 11 other analysts.

While Morningstar recommended a 'hold' rating for ST Engineering with a target price of S$11.10, citing lagging defense segment contract wins, the company remains upbeat about its second-half outlook. The group's first-half net profit rose 27.1% to S$512.1 million.