AU Optronics Corp (AUO, 友達光電) and Chi Mei Optoelectronics Corp (奇美電子), the nation’s largest liquid-crystal-display (LCD) makers, fell in Taipei trading after Credit Suisse Group cut its ratings on the stocks to “neutral.”
AUO fell NT$2.50 (US$.0.08), or 4.3 percent, to NT$55.10, the most since May 8, and Chi Mei fell NT$1.70, or 4.1 percent, to NT$40.10, the most since March 26.
“The strong demand for flat-panel TVs in the US up to now has been one of the surprises of this credit crisis,” Taipei-based analysts Felix Rusli and Vivian Jang wrote in a report yesterday, referring to the US subprime crisis.
“While this could continue for the foreseeable future, the risk is certainly that at some point demand will disappoint,” they wrote.
Credit Suisse formerly rated the stocks “outperform.”
AU Optronics had its 12-month price estimate lowered to NT$59 from NT$78 and Chi Mei had its target cut to NT$48 from NT$57.
Andy Abrams, an LCD/display analyst at Avian Securities LLC in New York, said in an e-mail to the Taipei Times yesterday that he was expecting “another disappointing monthly shipment report” from the Taiwanese panel producers later this week.
ADDITIONAL REPORTING BY KEVIN CHEN
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