Shares of Venture may have fallen after it reported earnings, but analysts were very postive on the results.
DBS, in a Thursday note subtitled “prospects burning bright,” raised its target price to S$32.20 from S$26.00 after increasing its 2018-19 earnings forecasts by 20-27 percent. It kept a Buy call.
”Fueled by positive industry backdrop and excellent execution, Venture’s share price has gained more than 150 percent over the past year, but we believe there is still room to run as it continues to deliver superior earnings performance,” DBS said, adding it believed the market hadn’t yet fully priced in Venture’s “unique offerings, know-how and hard-to-replicate ecosystems.”
DBS said fourth-quarter earnings beat its forecast by more than 30 percent.
Credit Suisse also raised its target price, to S$32.00 from S$27.20, keeping an Outperform call.
‘Strength to strength’
Maybank KimEng was also positive on the results.
In a note titled “From strength to strength,” the brokerage said the full-year results beat its expectation by more than 10 percent.
Maybank KE raised its target price to S$31.20 from S$27.50 after increasing 2018-19 earnings per share by 8-12 percent. It kept a Buy call.
RHB called it “another stellar quarter” in a note on Thursday.
‘Another stellar quarter’
The brokerage raised its 2018-19 net profit after tax forecasts by 15-20 percent, pushing up its target price to S$30.50 from S$24.10. RHB kept a Buy call.
”Going forward, signs of a slowdown are still yet to be seen,” RHB said. “With the bright outlook ahead, coupled with excess capacity to grow, we expect net profit after tax growth to continue, albeit at a slower pace, and margins improvement to sustain.”
‘Scaling new heights’
OCBC raised its fair value for Venture to S$34.00 from S$23.00, noting earnings beat its expectations. It kept a Buy call.
In a Thursday note titled “scaling new heights,” OCBC said it believed Venture’s growth was sustainable on a “relentless pursuit to create value through deep collaboration with customers.”
It pointed to Venture’s R&D services as ensuring customer “stickiness.”
CIMB also raised its target price, putting it at S$30.81, up from S$29.13 previously, after increasing its 2018-19 earnings per share forecasts by 5.8-7.5 percent. It kept an Add call.
The stock was down 1.85 percent at S$27.05 at 3:56 P.M. SGT.
But the decline was likely as the stock has already climbed more than 30 percent so far this year.
For the full year, Venture said after the market close that its net profit more than doubled to S$372.8 million on record revenue of S$4.0 billion, which was a nearly 40 percent on-year rise. Venture said its fully diluted earnings per share (EPS) for 2017 was S$1.30, more than doubling on-year.
Note: This story was updated from the original.