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Investing.com - Jefferies has upgraded Lingyi Itech Guangdong Co (SZ:002600) from Hold to Buy while slightly raising its price target to RMB16.10 from RMB16.00.
The upgrade comes as Jefferies anticipates a significant average selling price (ASP) increase for Lingyi’s iPhone components, with premium and foldable models potentially reaching approximately US$40-100 in content value compared to the blended average of about US$20 in 2024.
Jefferies highlighted that Lingyi’s overseas operations in India and the US, which account for 24% of the company’s revenue, have shown continued improvement after previously being profit laggards, with the India arm approaching breakeven status.
The research firm also noted that Lingyi’s US facilities may present "further upside surprise" for investors, adding another potential growth catalyst for the company.
According to Jefferies, the recent stock price correction following Lingyi’s results announcement has created more room for upside potential, contributing to the firm’s more positive outlook on the stock.
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