HLIB Research maintains 'buy' on Inari, ups target to RM3.79

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KUALA LUMPUR (Aug 24): Hong Leong IB Research has maintained its “buy” rating on Inari Amertron Bhd with a higher target price of RM3.79 (from RM3,67) and said it was positive on Inari’s business outlook as well as expansionary business plans.

In a note today, the research house said RF remains the chief growth driver with target of 30% year-on-year (y-o-y) expansion in FY16.

HLIB Research said management remains bullish on RF’s demand and sees great potential to capitalise on the LTE deployments in China, India, Middle East, Africa and Turkey.

“Shared that several sections in P13 are on track for transfer and qualification with expectations to start contribution to the group.

“Believes that it is ripe for monetization. After inking a licensing agreement with Avago, it will extend its capability into sales and marketing for its products.

“Reiterate 'buy' after raising target price to RM3.79 reflecting the upward earnings revisions, pegged to unchanged P/E multiple of 15x CY16 FD EPS,” it said.