- We raise our FY24/25 PATMI forecasts for Venture Corp (SGX:V03) by 7.1% and 9.8%, and increase our P/E target from 14.5 to 15.0x due to a brighter outlook. This raises our Venture Corp target price by 10% to S$15.40.
- - Read this at SGinvestors.io -
- Venture Corp's management revealed recently production of some NPIs (new product introductions) is likely to start in 4Q23E and more are slated for FY24E. In addition, customers’ inventory is depleted and more orders are likely in 2024.
- Through our channel checks, we are also more bullish FY24E will be stronger for Venture Corp as higher utilisation rate and operating leverage lead to better margins.
Demand likely to increase in FY24E
- - Read this at SGinvestors.io -
- We expect more orders in FY24E, which is likely to lead to a higher operating margin due to higher operating leverage. As a result, we are now more confident 3Q23 was the bottom for Venture Corp and expect revenue and PATMI growth in FY24.
Attractive 5.8% yield
- Read more at SGinvestors.io.
