Several foreign brokerages have raised their target prices on Compal Electronics Inc (仁寶) shares after the world’s second-largest contract notebook computer manufacturer reported better-than-expected first-quarter results.
Barclays Capital wrote in a research note on Friday that the NT$0.57 in earnings per share (EPS) that Compal posted in the first quarter was higher than its forecast of NT$0.43. It hiked its target price for Compal shares from NT$17 to NT$30 — a 31 percent upside from the stock’s closing price of NT$22.85 on Friday.
Compal posted NT$2.47 billion (US$82 million) in net profit in the January-to-March quarter, up 1 percent from the previous quarter, with its EPS little changed over the same period.
CLSA Asia-Pacific Markets hiked its forecasts for the computer maker’s EPS this year and next year by 15 percent each to NT$2.14 and NT$2.37 respectively, and raised its target price for the stock from NT$21.5 to NT$24.8, as well as revised its rating to “outperform” from “underperform.”
Citigroup Global Markets raised its target price to NT$28 from NT$25 and maintained a “buy” rating, while Bank of America Merrill Lynch hiked its target for the stock from NT$26 to NT$27.5 and also kept its “buy” recommendation.