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Investing.com - Jefferies initiated coverage on Zhejiang Crystal Optech Co (SH:002273) with a Buy rating and set a price target of RMB27.00.
The investment firm identified Crystal Optech as a "hidden gem" in the optics industry, noting that approximately 60% of the company’s revenue comes from Apple (NASDAQ:AAPL).
Unlike larger, better-known camera component suppliers such as Sony (NYSE:SONY), Largan, LG Innotek, and Sunny, Crystal Optech specializes in lower-cost optical components including prisms, filters, and cover glass, giving the company greater upside potential compared to its more widely covered peers.
Jefferies highlighted Crystal Optech’s expertise in specific optical component techniques, particularly coating and cold processing, as key competitive advantages.
The firm expects future iPhone camera upgrades to drive increased demand for Crystal Optech’s products, with additional camera requirements potentially generating strong dollar content growth for the company.
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