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Foreign brokerages raise target prices on Catcher shares

Foreign brokerages raise target prices on Catcher shares

Taipei, March 21 (CNA) Several foreign brokerages recently raised their target price on shares of Catcher Technology Co. (??), one of Taiwan's leading metal casing suppliers, after the company reported a new earnings high for 2014. Among the upbeat foreign brokerages, CIMB Securities raised the target price on Catcher shares from NT$350 to (US$11.11) to NT$430, the highest to date in foreign institutional investor circles. The brokerage left its "overweight" rating on the stock unchanged. During an investor conference held on Thursday, Catcher reported that it posted NT$17.88 billion in net profit for 2014, up 29.5 percent year-on-year, with earnings per share of NT$23.52, while consolidated sales rose 27.8 percent year-on-year to NT$55.28 billion. The figures for net profits and sales were the highest in the company's history. In the fourth quarter alone, Catcher's net profit rose 32 percent from the third quarter to NT$6.44 billion with EPS at NT$8.41. On Friday, shares in Catcher, dubbed one of the most important "Apple concept stocks" on the Taiwan Stock Exchange (TWSE), rose 7 percent, the daily maximum increase, to close the day at NT$324.00 after announcing its 2014 results the previous day. The term "Apple concept stocks" refers to those firms that supply Apple Inc. CIMB Securities said that the metal casing maker's results amazed the market as it indicated the company has maintained its lead over competitors in production technology, helping it secure more orders from Apple for iPhone production, adding that orders from the U.S.-based consumer electronics giant will rise further this year. As a result, the brokerage raised its forecast for Catcher's EPS in 2015 and 2016 by 18 percent and 24 percent, respectively, to NT$29.61 and NT$35.95. Deutsche Securities upgraded its target price on Catcher shares from NT$400 to NT$424, leaving a "buy" rating unchanged, while HSBC Securities raised its target price from NT$355 to NT$415 and maintained an "overweight" recommendation. BNP Paribas left its "buy" rating on Catcher shares unchanged, while upgrading the target price on the stock from NT$336 to NT$390. Catcher chairman Hung Shui-shu (???) said at the investor conference that based on orders placed by the company's clients, he expects to post higher sales for the first quarter than the previous quarter. Hung added that Catcher expects to see its bottom line further strengthen this year. In the first two months of 2015, Catcher's consolidated sales rose more than 65 percent from a year earlier, to NT$10.47 billion. (By Lo Hisu-wen and Frances Huang)


Updated : 2021-01-20 16:15 GMT+08:00