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Investing.com - Nomura/Instinet initiated coverage on Shenzhen T&S Communication (SZ:300570) with a Buy rating and a price target of RMB153.00, citing the company’s positioning to benefit from AI networking market growth.
The research firm highlighted structural growth opportunities in the global AI networking market, driven by accelerated infrastructure investment and technology upgrades from global AI leaders.
Shenzhen T&S, as a core supplier to Corning (NYSE:GLW), which contributed 70% of the company’s total revenue in 2024, is expected to benefit from increasing demand for AI infrastructure products, including MPO and shuffle boxes.
Nomura projects that content upgrades of MPO products and self-supply of key components such as MT ferrule will likely drive margin expansion for the company.
The firm estimates 46% revenue CAGR and 52% earnings CAGR for Shenzhen T&S over fiscal years 2025-2027, with the price target based on 52x FY26F EPS.
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