AllianceDBS Research upgrades Globetronics to Buy, raises target to RM7.50

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KUALA LUMPUR (April 16): AllianceDBS Research has upgraded Globetronics Technology Bhd to a high-conviction “Buy” (from Hold) at RM5.80 with a higher target price of RM7.50 (from RM5.20) and said the company’s end-customer division likely to introduce a major camera upgrade in 2016 involving depth-sensor module.

In a note today, the research house said it believes Globetronics would continue to trade at a premium valuation, given its excellent execution track record and strong growth visibility.

“Moreover, we think investors are also more convinced now that Globetronics has demonstrated its capabilities to secure new sensor products amid its strong relationship with the Swiss company,” it said.