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Catcher shares briefly breaches NT$400 after target price upgrade

Catcher shares briefly breaches NT$400 after target price upgrade

Taipei, July 1 (CNA) Shares of Catcher Technology Co. (??), one of Taiwan's leading metal casing suppliers, briefly breached the NT$400 (US$12.94) level Wednesday after a European brokerage upgraded its target price on the stock, dealers said. Although some investors locked in their early gains, taking the stock off its early high at the close of the session, hopes remained in place that Catcher will benefit from the launch of Apple's new iPhone later in the year, they said. Shares of Catcher rose 1.55 percent to close at NT$392.00 off an early high of NT$402, with 9.14 million shares changing hands on the Taiwan Stock Exchange, in which the weighted index ended up 0.56 percent at 9,375.23 points. The NT$402 was the highest intraday high in Catcher's history and pushed up its market capitalization to a new high of more than NT$300 billion. The stock attracted strong buying soon after the local main board opened as investors took cues from the European brokerage's move to hike its target price to NT$446 from NT$437, the dealers said. The higher target price reflected the brokerage's optimism toward Catcher's bottom line, in particular on expectations that the company will win a great number of orders placed by Apple to produce the next generation of the iPhone, which could be called the iPhone 6S, they said. With its share price hitting the NT$402.00 mark at one point, some selling followed to compromise the upturn, the dealers said, adding that the selling largely came from life insurance companies, which had perceived NT$400 as a good selling point. The upgrade of Catcher's target price by the European brokerage came after foreign media reported that the next iPhone is scheduled to go into commercial production in July at the earliest. The brokerage said that since Catcher boasts a high yield rate in metal casing production, the Taiwanese firm could be one of the beneficiaries of the new Apple device. In a research note, the brokerage said that it is possible for Catcher to win 25 percent of the total orders to supply metal casings for the new iPhone. The brokerage has raised Catcher's earnings per share (EPS) for 2015 and 2016 by 5.7 percent and 3.6 percent, respectively, to NT$31.21 and NT$37.18. The brokerage has maintained a "buy" recommendation on Catcher shares. In 2014, Catcher's EPS stood at NT$23.52, compared with NT$18.38 recorded a year earlier. (By Lo Hsiu-wen and Frances Huang)


Updated : 2021-09-23 16:27 GMT+08:00