AEM Holdings Ltd., the Technology sector company, was revisited by a Wall Street analyst on August 20. Analyst William Tng from CGS-CIMB upgraded the rating on the stock to a Hold and gave it a S$1.44 price target.
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William Tng’s rating is based on a combination of factors that reflect both the current performance and future prospects of AEM Holdings Ltd. The company reported a significant year-on-year increase in net profit for the first half of 2025, but this was offset by foreign exchange losses and inventory provisions that resulted in a small loss for the second quarter. Despite these challenges, AEM’s revenue growth was supported by order pull-ins from a key customer, which contributed to the positive revenue figures.
Looking ahead, William Tng anticipates that AEM’s earnings will improve in the fiscal years 2026 and 2027 as demand from new customers gains momentum. The Hold rating reflects a cautious optimism, as meaningful contributions from these new customers are expected over the next few years. The valuation of AEM is set at a higher P/E ratio based on anticipated earnings recovery, but investors are advised to wait for tangible earnings delivery from new customer engagements before expecting a re-rating of the stock. Potential risks include further delays in customer orders and slower global economic growth, while opportunities lie in early deliveries and accelerated orders from new customers.
According to TipRanks, Tng is a 4-star analyst with an average return of 11.5% and a 68.25% success rate. Tng covers the Technology sector, focusing on stocks such as Frencken Group Limited, Aztech Global Ltd., and AEM Holdings Ltd..
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a S$1.50 price target.