Bro­ker­ages raise tar­get prices on Catcher shares

The China Post - - BUSINESS -

Sev­eral for­eign bro­ker­ages re­cently raised their tar­get prices on shares of Catcher Tech­nol­ogy Co. ( ) af­ter the Tai­wanese metal cas­ing sup­plier posted record high sales for March.

UBS Se­cu­ri­ties, one of the bro­ker­ages, said Catcher will con­tinue to take ad­van­tage of its tech­nol­ogy lead over its peers to se­cure more or­ders from Ap­ple Inc. for iPhone pro­duc­tion.

Catcher, a long term sup­plier to Ap­ple, has been dubbed one of the “Ap­ple con­cept stocks” in the lo­cal mar­ket.

UBS Se­cu­ri­ties raised its tar­get price on Catcher from NT$350 (US$11.18) to NT$435, the high­est among the for­eign bro­ker­ages, while main­tain­ing an “over­weight” rat­ing on the stock.

Shares of Catcher closed up 1.16 per­cent at NT$350.00 on the Tai­wan Stock Ex­change Fri­day, when the weighted in­dex on the main board ended up 0.51 per­cent at 9,617.70 points.

Since Catcher re­leased its March sales data on April 7, its share price has climbed 3.86 per­cent.

Catcher posted NT$6.93 bil­lion in con­sol­i­dated sales for March, a 53.9 in­crease from Fe­bru­ary and the high­est monthly fig­ure in the com­pany’s his­tory. Mar­ket an­a­lysts at­trib­uted the growth to strong de­mand for Ap­ple’s lat­est iPhone mod­els in the global mar­ket.

Catcher re­ported NT$17.4 bil­lion in con­sol­i­dated sales for the first quar­ter, up 2.3 per­cent from the pre­vi­ous quar­ter and 67.1 per­cent year-on-year. The first quar­ter fig­ure was also the high­est ever recorded by the com­pany in a sin­gle quar­ter.

Mean­while, Credit Ly­on­nais Se- cu­ri­ties Asia (CLSA) fore­cast that Catcher will ben­e­fit from grow­ing ship­ments to HTC Corp. ( ) and Sony Corp. for pro­duc­tion of their lat­est flag­ship smart­phone mod­els.

Catcher’s sec­ond-quar­ter con­sol­i­dated sales are likely to ex­ceed NT$20 bil­lion, ris­ing about 16 per­cent from the pre­vi­ous quar­ter, CLSA fore­cast.

It pro­jected that Catcher’s earn­ings per share will climb to NT$29.8 in 2015, and NT$34 in 2016, com­pared with NT$23.21 last year.

As a re­sult, CLSA said, it has raised its tar­get price on Catcher shares to NT$408 from NT$374 and main­tained its “buy” rat­ing on the stock.

In sim­i­lar vein, Bar­clays Cap­i­tal raised its tar­get price on Catcher shares to NT$420 from NT$350, while Credit Suisse has up­graded its tar­get price on the stock to NT$394 from NT$375.

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