Despite new order wins, CSE Global is blighted by supply chain disruptions and a lack of large greenfield projects. As such, DBS Group Research analyst Ling Lee Keng is downgrading the systems integrator to “hold” from “buy”.
“We remain positive on CSE’s recovery as new order wins from all segments continued to recover. Order intake surged 100.3% to $421.7 million on robust growth across all three segments. However, supply chain constraints continue to persist, hence pressure on margin continues,” she writes.
In an Aug 16 note, Ling trimmed CSE’s target price to 45 cents from 59 cents previously.