Target price for Largan slashed to below NT$3,000 - Taipei Times
Wed, Apr 04, 2018 - Page 12 News List

Target price for Largan slashed to below NT$3,000

Staff writer, with CNA

A US-based brokerage has cut its target price for shares of Largan Precision Co (大立光), a supplier of smartphone camera lenses to Apple Inc, to below NT$3,000, citing weak demand for iPhones.

In a research note released on Monday, the brokerage said it has reduced its target price for Largan shares to NT$2,800 from NT$3,200 after it cut its forecast for iPhone shipments for the first half of this year.

Shipments of iPhones, which accounts for about 40 percent of Largan’s total sales, are expected to hit 52 million units in the first quarter of this year, lower than the brokerage’s previous forecast of 55 million units.

Shipments of iPhones are expected to reach 42 million units in the second quarter, also lower than the brokerage’s earlier forecast of 45 million units.

Largan shares yesterday closed unchanged at NT$3,185 on the Taiwan Stock Exchange as bargain-hunting helped the stock recover from an early low of NT$3,005.

The stock fell 4.93 percent on Monday, which sparked concerns that Largan shares could dip below NT$3,000 soon. They are down 47 percent from their all-time intraday high of NT$6,075 in August last year.

Apple is likely to adopt single-lens cameras in its upcoming iPhones, which is not favorable for Largan as its biggest competitive edge lies in dual and multiple lens production, the brokerage said.

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