ST Engineering shares rose 7.85% to S$5.84 and hit a new high on Monday. Singapore Technologies Engineering's "proactive steps" to pursue M&A and intensify investments into future growth areas position the company for mid- to high-single-digit revenue growth over the long term, DBS Group Research analyst Jason Sum says in a note.

DBS raises its target to S$6.00 from S$5.40 while maintaining a buy rating.

ST Engineering's record order backlog underpins earnings visibility, while organic expansions and faster project deliveries should also support growth, he says. The engineering company's valuations seem undemanding due to sound fundamentals, Sum says, adding that the stock could see a re-rating in the near term. Sum remains bullish on the stock and keeps ST Engineering as the top pick in the Singapore aviation sector.

On Feb 27, the company reported better FY2024 earnings and also increased its final quarterly dividend to 5 cents instead of the usual 4 cents per share.

ST Engineering reported better operating efficiency and guided for faster growth this current year.

Krishna Guha of Maybank Securities, in his Feb 27 note, calls the FY2024 results a "strong finish". Besides his upgrade from "hold" to "buy", he has increased his target price to $5.70 from $4.70.