SINGAPORE (Mar 7): CIMB is optimistic on Memtech International projects from new customers like Tesla, Beats and Bose giving earnings a boost.
The research house is also raising its target price to $1.76, based on 12 times FY19 earnings from 10 times previously.
"We think Memtech deserves to trade at a slightly higher P/E multiple than the regional industry average of 11.4 times, given its stronger three-year EPS CAGR of 13.8% versus 12.6% for the industry," says lead analyst Ngoh Yi Sin in a Tuesday report.
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