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Investing.com - HSBC upgraded Nan Ya Printed Circuit Board Corp. (TPE:8046) from Hold to Buy on Tuesday, while significantly raising its price target to NT$243.00 from NT$157.00.
The substantial price target increase represents a 33% upside potential from current levels, according to HSBC’s analysis. The firm cited expected pricing upside from substrate materials and growing demand from high-performance computing and artificial intelligence sectors.
HSBC’s fiscal year 2025 earnings per share estimate sits 8% above consensus, while its 2026 projection exceeds consensus by 29%. The firm expects Nan Ya to achieve a 14.2% gross margin in fiscal 2026, compared to the 13.4% consensus estimate.
The upgrade is based on a higher target price-to-book multiple of 3.8x applied to FY26e book value per share, up from the previous 2.2x multiple. HSBC notes this valuation slightly exceeds Nan Ya’s five-year average P/B of 3.4x.
HSBC believes Nan Ya has "relatively higher pricing upside versus Taiwan peers" based on its customer portfolio and performance during previous market cycles, which should help offset weaker demand in consumer electronics.
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