UOB Kay Hian Group Research analyst John Cheong has kept a “buy” rating on Venture Corporation with a target price of $22.80.
Venture Corporation’s FY2021 ended December 2021 results highlight that it expects a “robust demand outlook” based on customers’ orders and forecasts across various technology domains, according to Cheong. Some key areas of potential include the life science domain, where the demand for products in the area of analytical instruments remains strong, in addition to next-generation sequencing in research and development (R&D) labs being engaged in are driving demand.
As at end 2021, Venture Corporation recorded net cash of $808 million, which accounts for about 15% of its current market capitalisation, as compared to its US-listed peers, of which many were in net debt positions. More importantly, Venture Corporation has been consistent in its dividend payouts, as it has been dishing out the same amount of dividends or better than that in the preceding years.