In a report released today, William Tng from CGS-CIMB downgraded Aztech Global Ltd. (8AZ – Research Report) to a Sell, with a price target of S$0.41.
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William Tng has given his Sell rating due to a combination of factors impacting Aztech Global Ltd.’s financial performance. The company’s first-quarter results for 2025 were significantly below expectations, with revenue and net profit forming only a small fraction of the full-year forecasts. This underperformance is attributed to a decline in demand from its customers, leading to a substantial miss in earnings projections.
Additionally, the outlook for the fiscal year 2025 remains challenging, with no clear order book guidance provided and uncertainties arising from geopolitical and tariff issues. Although Aztech has secured new customers and is enhancing its production capabilities, these efforts may not suffice to counterbalance the revenue decline. The ongoing US-China trade tensions further exacerbate the weak revenue outlook, prompting a significant reduction in revenue and EPS forecasts for the upcoming years. Consequently, the stock’s valuation has been adjusted downward, and the dividend yield potential appears limited, justifying the downgrade to a Sell rating.
In another report released today, DBS also maintained a Sell rating on the stock with a S$0.52 price target.