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Catcher shares up on U.S brokerage's upgrade

Catcher shares up on U.S brokerage's upgrade

Taipei, Feb. 3 (CNA) Shares of Catcher Technology Co. (??), one of Taiwan's leading metal casing suppliers, moved higher Tuesday morning after an American brokerage upgraded its target price for the stock on optimism over its earnings outlook, dealers said. The support for the stock also reflected strong buying by foreign institutional investors in the past month, providing additional evidence that Catcher has strong earnings prospects, they said. As of 11:11 a.m., shares of Catcher Technology had added 3.41 percent to NT$288.00 (US$9.14), with 8.09 million shares changing hands. The weighted index on the Taiwan Stock Exchange was up 0.66 percent at 9,448.69. "The brokerage's report sparked interest in Catcher soon after the local bourse opened. I agree with the brokerage's assessment because I think Catcher's share price will continue rising because of its strong bottom line," Marbo Securities Investment Consulting Co. analyst Chang Chih-cheng said. In the research report released Monday, the U.S. brokerage said it has raised its target price on Catcher shares to NT$380 from NT$350, while leaving its "overweight" recommendation unchanged. Aside from orders from Apple Inc., Catcher has received orders from non-Apple vendors that are starting to adopt metal casings, which could help Catcher this year, said the brokerage, whose name cannot be reported under new rules set by Taiwan's Financial Supervisory Commission because it was offering specific forecasts. In addition, Catcher is expected to secure large orders from Apple for the latest iPhone models, in particular the 4.7-inch iPhone 6 this year, the brokerage said, with Apple expected to account for 58 percent of Catcher's total sales this year from 46 percent seen in 2014. The brokerage said the company could post NT$26.90 in earnings per share for 2015, and NT$30.58 in EPS for 2016, up from NT$22-NT$23 estimated by the market for 2014. In the first nine quarters of last year, Catcher's EPS was NT$15.11, compared with NT$13.76 recorded over the same period of 2013. "Judging from the brokerage's upgraded target price and EPS forecasts, the stock's valuation remains relatively low as its bottom line will get stronger over the next couple years," Chang said. "Due to its strong competitive edge in production technology, the stock is my top pick among local metal casing suppliers." Chang said the recent heavy buying by foreign institutional investors backed up the brokerage's assessment. Foreign institutional investors bought a net 18.66 million Catcher shares in January and an additional 2.04 million on Monday, the first trading session of February. "Foreign institutional buying could continue on lingering optimism over the company's earnings," Chang said. In a statement released by Catcher Monday, the company is planning to invest NT$902 million to expand the production capacity of its plant in Jiangsu province in China to meet rising demand from its clients. "Catcher is pouring more and more capital into expanding capacity, which shows that the company is upbeat about the orders it will receive. It is a fundamentally sound company," Chang said. (By Frances Huang)


Updated : 2021-09-28 22:26 GMT+08:00