In a report released today, John Cheong from UOB Kay Hian downgraded Aztech Global Ltd. (8AZ – Research Report) to a Sell, with a price target of S$0.46.
John Cheong has given his Sell rating due to a combination of factors impacting Aztech Global Ltd. The company’s first-quarter earnings for 2025 were significantly below expectations, with a net profit of S$1.5 million, representing a 91% year-over-year decline. This performance only accounted for 3% of the full-year estimate, primarily due to a 67% drop in revenue driven by decreased demand for IoT devices and data-communication products.
Furthermore, the outlook for Aztech Global remains challenging amid ongoing global economic uncertainties, including trade wars and geopolitical tensions. The company is attempting to navigate these difficulties by strengthening customer relationships, diversifying its supplier network, and managing costs and capital prudently. Despite these efforts, the uncertain environment and the company’s recent financial performance have led to a downgrade in the stock rating to Sell, with a reduced target price of S$0.46.
In another report released today, DBS also maintained a Sell rating on the stock with a S$0.52 price target.