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play. Jul 12, 2018 – 3:36 PM
CGS-CIMB ANALYSTS downgraded their call on the Venture Corporation listed on the motherboard to "hold" and reduced the target price of the stock to US $ 17.83 from 25 , $ 64 As brokerage warns of ongoing disagreements between the United States and China.
This happens despite the fact that Venture has not been heavily affected by current trade tensions.
In its research note, CGS-CIMB stated that the electronic service provider is still targeting growth during fiscal 20118 and there is also no change in direction or direction. customer visibility at the moment.
Although there are still shortages of components, Venture was able to manage it with suppliers, CGS-CIMB added.
Brokerage suggests Venture could post net earnings of $ 87.6 million for the second quarter, up 25% year-over-year and 5% in -on-quarter
However, in half y The net profit could fall by about 15.7% year-on-year given Venture's high profit base in the second half of 2017, he adds. The brokerage also assumed that Venture's expected sales growth in fiscal 2018-2020 would be the same as the growth rate of 7.3% recorded in fiscal years 2014 to 2016.
"Despite the threat of higher costs due to the rate impact, we leave our margin assumptions intact as we assume that Venture will continue to properly manage costs (as evident in the first quarter results of 2018), "CGS- CIMB said.
A major upside risk to his call is the resolution of US-China trade tensions, which could see Venture return to a higher revenue growth rate compared to the CGS-CIMB forecast period. The downside risks could come from delays in product launches by customers.
At 3:15 pm, Venture shares traded down $ 0.41, or 2.5%, to $ 16.26 in Singapore.
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