Mon, May 12, 2014 - Page 13 News List

Compal sees foreign firms raise share target prices

Staff writer, with CNA

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.

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