Philip Morris International (PMI)

Venture kept at 'sell' by UOB on grimmer production outlook

SINGAPORE (Dec 6): UOB KayHian is maintaining Venture Corp at “sell” given increasing risk production share of IQOS (I quit ordinary smoking) devices could be shifted away to another contract manufacturer by Philip Morris which is seeking to improve economics.

In a Thursday report, analyst Foo Zhi Wei says UOB channel checks into the IQOS supply chain indicate that the second manufacturer, Flex has reached the supplier concentration limit for Philip Morris although UOB was not able to ascertain as to whether Venture has similarly hit a production ceiling.

Venture faces 2019 earnings risk due to competition, says UOB Kay Hian

SINGAPORE (Oct 19): UOB Kay Hian is maintaining its “hold” call on Venture Corporation with a target price of $18.20.

This comes post the release of Philip Morris International’s (PMI) 3Q earnings statement last night, which reflected strong operating metrics but a more mixed outlook on device production split, in UOB’s view.

In a Friday report, analyst Foo Zhiwei says current levels may not represent a buying opportunity, as he remains cautious on Venture’s earnings outlook.

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