Street Calls of the Week
Investing.com - JPMorgan has raised its price target on Largan Precision Co Ltd. (TW:3008) to TWD3,150 from TWD3,100 while maintaining an Overweight rating on the stock.
The adjustment follows Largan’s third-quarter 2025 earnings report and subsequent earnings call. The company’s gross margin missed expectations due to negative foreign exchange impact, product mix shifts, and yield issues related to initial periscope lens production for new iPhone models.
For the fourth quarter of 2025, Largan guided for continued revenue momentum in October with some yield improvements. The company cautioned that performance might weaken from November onward following months of order pull-in.
JPMorgan cited a positive multi-year outlook for Largan, driven by solid specification improvements in future iPhone cycles. The firm specifically highlighted the trend toward variable aperture technology in iPhone 18 Pro models expected in the second half of 2026.
The investment bank expects these technological advancements to generate meaningful average selling price growth for Largan’s products, supporting the higher price target despite near-term production challenges.
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