by winston » Wed Dec 08, 2010 11:18 am
Not vested
DJ MARKET TALK: Nomura Raises CSR Corp Target To HK$10.50
November 19, 2010
1134 [Dow Jones] STOCK CALL: Nomura raises CSR Corp. (1766.HK) target to HK$10.50 from HK$9.00, after raising target P/E from 20X to 22X to reflect expectations of continuous railway investment in China, further metro investment, export opportunities.
Keeps Buy rating; says company top China railway pick, given its continuous localisation progress, changing product mix, cost down efforts.
Adds, higher-than expected 3Q10 gross margin of 18% signals greater operating leverage next year due to economies of scale.
House lifts FY11-12F net profit forecasts by 6%-14%, after adjusting FY11, FY12 gross margin assumptions to 17.3%, 17.8%, respectively, vs previous forecast of 16.9%, 17.0%.
Source: Dow Jones Newswire
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