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Investing.com - Jefferies upgraded Sunny Optical Technology Group Co Ltd (HK:2382) (OTC:SNPTF) from Hold to Buy and raised its price target to HK$94.00 from HK$85.00.
The upgrade follows Sunny Optical’s announcement that it has entered a memorandum of understanding with Goertek for strategic cooperation in augmented reality (AR) technology.
Under the agreement, Sunny Optical will hold a 33% stake in Goertek Optical, which will fully own Sunny’s Shanghai OmniLight, a manufacturer of diffraction optical waveguide technology that serves as a key component for AR devices.
Jefferies noted that the cooperation may leverage both research and development personnel and resources while sharing future investment burdens between the companies.
The investment firm believes the partnership will be beneficial for securing key projects and creating future upside potential, identifying favorable signs for a re-rating of Sunny Optical’s stock.
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