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Catcher shares up after target price upgraded

Catcher shares up after target price upgraded

Taipei, Oct. 8 (CNA) Shares of Catcher Technology Co. (??) moved higher Friday morning after J.P. Morgan Chase raised its target price for the metal casing supplier on the back of an increase in orders placed by Apple Inc., dealers said. The stock also saw buying sparked by optimism toward its bottom line after the Apple concept stock reported a new quarterly high in sales in the third quarter, for the sixth quarter in a row, the dealers said. As of 11:02 a.m., shares of Catcher had added 0.85 percent to NT$356.50 (US$10.90), with 4.70 million shares changing hands. The weighted index on the Taiwan Stock Exchange was up 0.02 percent at 8,496.95 points. "Investors simply seized the latest foreign brokerage report as a cause to pick up the stock this morning," MasterLink Securities analyst Tom Tang said. In a research note released the previous day, J.P. Morgan Chase said it had raised its target price on Catcher shares to NT$500 from an earlier estimate of NT$450. The target price was the highest among foreign institutional investors who track the stock. "But whether the stock will reach as high as NT$500, as J.P. Morgan Chase has predicted, is up to whether and how foreign institutional investors continue to raise their holdings in Catcher shares, Tang said. "As Catcher has been included in a basket of foreign institutional investors' portfolios, its movement largely depends on foreign brokerages' strategies," he added. According to the TWSE, foreign institutional investors held a 55.32 percent stake in Catcher as of Wednesday. Tang said the foreign holdings in Catcher shares have been high and that foreign institutional investors' buying or selling is critical to the stock's future movement. Maintaining an upbeat attitude, J.P. Morgan Chase said that Catcher has taken lead over its peers in metal casing production technology. The brokerage said that as one of the important suppliers to Apple, the firm is expected to generate about 50 percent of its total revenue from the U.S. consumer electronics giant in 2015, and the ratio is likely to rise to 70 percent by 2017. Furthermore, its product capacity and ability to execute its expansion plans have made the company very competitive and have boosted the company's pricing power to make it one of the most profitable metal casing makers in the world, J.P. Morgan Chase said, adding that few rivals will be able to match its success. "Judging from its third-quarter sales, I have no doubt that Catcher is a fundamentally good company," Tang said. In the July-September period, Catcher posted NT$21.41 billion in consolidated sales, up 6.3 percent from a year earlier and up 47.3 percent from a year earlier. The third quarter was the sixth consecutive quarter in which Catcher recorded a new sales high. In September alone, Catcher's consolidated sales rose 11.1 percent from a month earlier to a new monthly high of NT$7.98 billion. In the first nine months of this year, the company enjoyed a 54 percent year-on-year increase in sales and the nine-month figure stood at NT$58.93 billion, topping the NT$55.28 billion recorded for the whole of 2014. After taking into account the peak season effect, the market anticipates that Catcher's sales for the fourth quarter will grow at a double-digit pace from a quarter earlier. (By Lo Hsiu-wen and Frances Huang)


Updated : 2021-09-28 01:33 GMT+08:00