Morgan Stanley downgrades Nuvoton Technology stock rating to Equalweight

Published 06/08/2025, 09:52
Morgan Stanley downgrades Nuvoton Technology stock rating to Equalweight

Investing.com - Morgan Stanley (NYSE:MS) downgraded Nuvoton Technology Corp (TPE:4919) from Overweight to Equalweight on Wednesday, while significantly reducing its price target to NT$60.00 from NT$85.00.

The downgrade reflects Morgan Stanley’s concerns about foreign exchange impacts on the company’s 2025-2027 earnings estimates, which the firm believes could have structural implications for Nuvoton’s performance.

Morgan Stanley noted that Nuvoton still needs time to realize revenue contributions from artificial intelligence initiatives, while momentum in non-AI segments remains "quite lukewarm" according to the research note.

The investment bank also cited pricing competition from Chinese competitors and delayed new product launches as factors that could challenge Nuvoton’s operations in the near term.

Despite the downgrade, Morgan Stanley stopped short of an Underweight rating, noting that Nuvoton’s current valuation at 1.7 times next-twelve-months book value per share sits below its historical average of 2.3 times since 2012.

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