SINGAPORE (Jan 10): Maybank Kim Eng says Venture Corp's estimated 39% revenue surge in FY17 is "no fluke" and that the Street may be underestimating forward revenue and margins.
Maybank expects Venture’s FY17 revenue to grow 39% y-o-y as analysis of the company's revenue and customers suggests it likely won significant allocations from a few existing customers.
As such, Maybank is initiating coverage of Venture with a "buy" and target price of $27.50. The house is valuing the company at 18.8 times FY18 earnings, a 10% premium over its global high-mix, low-volume peers, given its estimated 21% EPS CAGR for FY17-19 vs 12%.
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