AffinHwang Capital keeps Hold on Globetronics, cuts target to RM3.58

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KUALA LUMPUR (July 27): AffinHwang Capital Research has maintained its “Hold” rating on Globetronics Technology Bhd (Globe) at RM3.27 with a lower target price of RM3.58 (from RM3.87) and said Globe’s weak 2Q16 results were below expectations.

In a note today, the research house said although it expects earnings to recover in 2H16 as production normalises and as a new sensor product is introduced, the delay in the commencement of the new sensor will likely reduce its earnings contribution in subsequent quarters.

“We cut our FY16-18E EPS by 5-26% and reduce our target price to RM3.58. Maintain Hold,” it said.