BYD Electronic 0285

[winston]

DJ MARKET TALK: CS Cuts BYD Electronic To Neutral Vs Outperform

0852 [Dow Jones] STOCK CALL: Credit Suisse downgrades BYD Electronic (0285.HK) to Neutral from Outperform on limited upside to target after stock's 43% rally since early December. Lowers target to HK$2.85 from HK$2.90 after trimming FY09-10 EPS forecasts by 1% each. Says channel checks suggest Nokia (NOK), which accounts for 80% of BYDE's handset component sales, is cutting handset assembly orders to OEMs.

Notes BYDE management says that division's growth could be less robust vs expectations; house lowers FY09 handset assembly revenue growth forecast to 8% from 20%, but adds expects division to be barely profitable, bottomline impact minimal. "Trading at 4.5X FY09E P/E, with increasingly more negative sector news flow to come, BYDE's valuation is no longer considered distressed.

In our view, some investors may take the negative news flow as an excuse to take profit." Shares closed yesterday down 4.7% at HK$2.81.

[winston]

not vested

BYD ELECTRONIC (00285.HK) target raised to $14, reiterated Buy - Nomura

Nomura, in its latest research report, raised its target price of BYD ELECTRONIC (00285.HK) +0.740 (+8.959%) Short selling $3.62M; Ratio 3.211% from $6.8 to $14 in accordance with its upward revisions on the company's 2014/15 EPS estimates by 13% and 25% respectively.

The research house recommended investors to further accumulate the stock for the potential earnings upside due to Samsung's transition from plastic casing to metal casting in its middle-class and high-class smartphone models since 4Q2014.

Given the result share price volatility, this has created a good buy opportunity.

Nomura reiterated its Buy rating on the company.

Source: AAStocks Financial News