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Investing.com - JPMorgan downgraded ASUSTeK Computer Inc (TPE:2357) (OTC:AKCPF) from Overweight to Neutral, while lowering its price target to NT$650.00 from NT$660.00.
The stock has outperformed the index by 12% and other PC peers by approximately 15-30% year-to-date, pushing valuations to 15x 12-month forward earnings per share, which is at the high end of the company’s historical range.
JPMorgan expects ASUSTeK to report below-optimal margins in the second quarter, with foreign exchange volatility potentially offsetting revenue gains, while third-quarter revenue outlook is projected to be below seasonal patterns following strong second-quarter performance.
The investment bank cited longer-term concerns including lackluster PC demand and continued uncertainty from U.S. tariff policies, leading analysts to reduce their 2025 and 2026 earnings estimates by 10% and 1% respectively.
The new price target of NT$650 is based on 13x 2026 estimated earnings per share, with JPMorgan identifying potential upside risks including stronger-than-expected gaming PC demand and further AI server business design wins, while downside risks include higher-than-anticipated tariffs on PCs exported from Southeast Asia.
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