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Japanese brokerage upgrades HTC stock rating to 'neutral'

Japanese brokerage upgrades HTC stock rating to 'neutral'

Taipei, Jan. 29 (CNA) A Japanese foreign brokerage has upgraded its stock rating on Taiwanese phone maker HTC Corp. from "reduce" to "neutral" because of an enhanced product portfolio that might lead to greater sales growth in 2015. Under new rules set by Taiwan's Financial Supervisory Commission, the name of the brokerage cannot be reported because it is offering specific forecasts. The brokerage said in a research note Wednesday that HTC's strategies have become more flexible for 2015, with more aggressive product lineups covering different market segments and an aggressive outsourcing approach that can accelerate the company's time to market and increase the number of its products without adding too much operating expenses. Adopting more MediaTek chipsets for both high-end and entry-level phones could also help HTC reduce costs and shorten the design cycle, and the company is expected to launch more innovative accessories and wearable devices in 2015 following last year's unveiling of the RE action camera, the brokerage said. A more solid volume base from the lower-end Desire series, together with a more aggressive higher-end strategy, will lead to stronger sales growth of 18 percent year-on-year in 2015 for HTC, the brokerage said, raising its price target for HTC shares to NT$172 (US$5.5) from NT$125. It forecast that HTC's handset shipments will grow from 22.3 million units in 2014 to 27.7 million units in 2015 and 29.8 million units in 2016. However, HTC's long-term earnings outlook could still be clouded by the severe smartphone market competition, the brokerage firm warned. Shares of HTC had fallen 0.63 percent to NT$157.50 as of 11:37 a.m. Thursday on the Taiwan stock exchange. (By Jeffrey Wu)


Updated : 2021-09-21 03:41 GMT+08:00