Frencken proxy to growth in 5G and AI: analysts

Analysts are recommending ‘buy’ on global technology company Frencken Group for its proxy to growth trends in 5G, AI, health and wellness and population aging through its blue-chip customers, says Maybank Kim Eng analyst Lai Gene Lih. This comes on the back of 3QFY2020 earnings of $13.3 million.

In a Nov 21 note, Lai maintained ‘buy’ on Frencken with a sustained target price of $1.39.

“In the short term, semiconductor equipment/analytical/automotive endmarkets, which form around 70% of sales, should provide cyclical resilience. Longer-term, we are excited by margin growth potential from deepening value-add with customers as Frencken launches a breadth of products in coming years,” says Lai.