Venture Corp, a prominent player in the electronics manufacturing sector, has retained its ‘buy’ rating with a revised target price of S$12.60, up from S$12.50. This adjustment reflects an 11% upside potential and a yield of approximately 7%. The company’s valuation continues to be appealing, even as trade uncertainties linger, according to the latest analysis by RHB.
The decision to maintain the ‘buy’ rating comes after a marginal 2% reduction in forecasted earnings for the financial years 2025 to 2027. The target price has been slightly increased as the price-to-earnings ratio is rolled over to a blended 15 times for the fiscal years 2025 and 2026, compared to the previous 15 times for 2025 alone. This adjustment is positioned at 0.5 standard deviations below the mean.
Analyst Alfie Yeo noted that the current valuation has already accounted for existing universal reciprocal tariff rates. Any potential reduction in these rates, particularly for countries like Malaysia, could act as catalysts for Venture Corp’s share price. “We deem any rate lowering for countries as share price catalysts,” Yeo stated.
The company’s robust valuation and yield make it a compelling investment, particularly in the context of ongoing trade challenges. Looking ahead, any favourable changes in tariff rates could further enhance its market position and investor appeal.
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