CIMB Research downgrades Inari to Hold, target price RM1.65

CIMB Research downgrades Inari to Hold, target price RM1.65

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KUALA LUMPUR (Feb 22): CIMB IB Research has downgraded Inari Amertron Bhd to “Hold” at RM1.61 with an unchanged target price (TP) of RM1.65 and said Inari’s 1HFY6/19 results were in line at 49%/48% of house/Bloomberg consensus.

In a note yesterday, the research house said it expects minimal improvement in 2HFY19 due to sluggish smartphone market.

“Core net profit fell 18% y-o-y in 1HFY19 due to lower utilisation following weak sensor and RF demand and unfavourable forex movement.

“Downgrade to Hold with an unchanged RM1.65 TP in view of the recent surge in share price. We prefer Malaysian Pacific Industries Bhd for exposure to the technology sector,” it said.