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Foreign brokerages raise target prices on Catcher shares

Foreign brokerages raise target prices on Catcher shares

Taipei, Aug. 8 (CNA) Several foreign brokerages have raised their target prices for shares of Catcher Technology Co. (??), a metal casing supplier to Apple Inc., amid optimism that the Taiwanese firm will see its sales grow quarter by quarter for the rest of this year. The brokerage houses said that with Apple expected to unveil the next generation of the iPhone in September, Catcher could see its sales growth accelerate in the second half of the year. Catcher posted higher-than-expected net profit for the second quarter, and the launch of the new iPhone is expected to help the supplier continue the upward momentum, said one European brokerage. Taiwanese regulators forbid local media to reveal the names of foreign brokerages when they give price forecasts for specific stocks. Catcher had a net profit of NT$5.25 billion (US$166 million) in the second quarter, up 12.8 percent from a quarter earlier and also up 44 percent from a year earlier. It had earnings per share of NT$6.81 for the April-June quarter, up 12.7 percent from NT$6.04 in the first quarter. Catcher's sales in the second quarter grew 15.7 percent from a quarter earlier to a new quarterly high of NT$20.13 billion. As a result, the brokerage said it has raised its target price on Catcher shares from NT$490 to NT$497, the highest among foreign institutional investors who track the stock. The brokerage has maintained a "buy" rating on Catcher shares. In the two trading sessions following an investor conference on Wednesday at which the company released its second quarter results, Catcher shares rose a combined 3.54 percent to close at NT$351.00 on Friday. During the same period, the weighted index on the main board fell 1.17 percent. The brokerage predicted that Catcher's consolidated sales could increase 5 percent and 17 percent sequentially in the third quarter and fourth quarter, respectively, to set new sales records. The forecasts by the brokerage echoed the comments made by Catcher Chairman Hung Shui-shu (???) at the investor conference. Hung said his company will be "very busy" over the next few months because of an increase in orders placed by its major clients. A Hong Kong-based brokerage has also hiked its target price for Catcher shares to NT$477 from NT$473, while maintaining an "outperform" rating on the stock. (By Lo Hsiu-wen and Frances Huang)


Updated : 2021-09-26 17:06 GMT+08:00