- We keep our call given Venture Corp’s attractive valuation and yield. We believe valuations have priced in the trade uncertainties for now, having trimmed our FY25F-27F earnings by a marginal 2% each. Our Venture Corp's target price is raised slightly as we roll over our target P/E to a blended 15x FY25F-26F earnings from 15x FY25F, at -0.5 standard deviation of mean.
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Attractive valuations, and balance sheet remains strong.
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- In addition, Venture Corp is buying back its shares, which supports EPS. The stock is attractively priced at -1 standard deviation of its mean historical P/E and trades below peer average despite our earnings cut due to 1Q25’s revenue disappointment.
- We believe the stock’s downside should also be priced in, in the current dynamic tariff situation. Our dividend payout assumption remains unchanged.
1Q25 earnings marginally below.
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