- We upgrade our call to BUY as we think Venture Corp (SGX:V03) is seeing the tail-end of its customers’ destocking phase, and anticipate its recovery moving into FY25. We raise Venture Corp's target price post lifting our earnings estimates for Venture Corp and P/E (to 16x, from 14x) on blended FY24-25F earnings – on a recovery in FY25F.
- - Read this at SGinvestors.io -
- Our previous rating downgrade (done on 25 Feb, see report: Venture Corporation - Near-term Prospects Priced In) was due to the continued customer destocking situation, but we have maintained that its recovery will commence in 2H24.
Expect customer destocking to ease from 2H24.
- - Read this at SGinvestors.io -
- Some of Venture Corp’s peers have also experienced similar customer inventory situations earlier on – they were also optimistic on sequential improvement, with customers in certain sectors seeing inventory bottoming out. Hence, we expect improving customer orders as inventory levels in the supply chain ease going into 2H24 and FY25.
Raise FY25-26F earnings forecast by 3%.
- Read more at SGinvestors.io.
