Morgan Stanley cut Sunny Optical’s target price to HK$90 from HK$106 
STOCKS
Morgan Stanley cut Sunny Optical’s target price to HK$90 from HK$106 
STOCKS

Morgan Stanley cut Sunny Optical’s target price to HK$90 from HK$106 

 

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Morgan Stanley lowered Sunny Optical’s revenue forecast in the first half by 5%-8% and profit forecast by 30%-48%. Sales volume and product average price expectations were also lowered. Morgan Stanley believed that the company’s management will trim its annual shipment target in the interim results.

Share price of the Apple supplier is expected to drop between HK$70 – HK$90 in the next 2 to 3 months as investors are concerned about the trend of the average selling price and profit margin in the first half.

Morgan Stanley cut the target price from HK$106 to HK$90, rating kept at overweight.

In view of the shipment bottoming out from April to May, the broker expected the company’s earnings will also bottom out from July to August.