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Investing.com - CLSA downgraded Tong Hsing Electronic Industries Ltd (TPE:6271) from Outperform to Hold on Tuesday, while reducing its price target to NT$110.00 from NT$120.00.
The downgrade comes as the research firm cited ongoing pressure from weak automotive demand and continued inventory correction, which it believes will likely extend the bottom period for the stock.
CLSA indicated that these challenges could result in multiple rounds of earnings revisions in upcoming quarters, despite maintaining that "the worst is over" for Tong Hsing.
The firm has reduced its earnings per share forecasts for Tong Hsing by 2% for 2025 and 6% for 2026, specifically to account for weakening automotive demand trends.
CLSA stated it would prefer to revisit the stock once there is "better shipment visibility" for underdeveloped projects, including flashlight and power discrete components, with the new price target still based on 12 times 2026 estimated earnings per share.
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