CMB International Securities analyst reiterated a Buy rating on BaTeLab Co., Ltd. (2149 – Research Report) on May 26 and set a price target of HK$69.50.
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CMB International Securities has given its Buy rating due to a combination of factors that highlight BaTeLab Co., Ltd.’s strong market position and growth potential. The company recently completed a private placement, raising HK$120 million, which is expected to enhance its upstream manufacturing capabilities, crucial for its expansion in the industrial-grade analog IC market. This strategic move is anticipated to strengthen BaTeLab’s operational liquidity and secure its future growth trajectory.
CMB International Securities also emphasizes BaTeLab’s robust revenue growth projections of 27%-33% year-over-year from 2025 to 2027, coupled with high profitability margins of 53%-54% during the same period. The stock’s current trading valuation is considered attractive, especially when compared to domestic peers. Despite potential risks such as economic volatility and changes in supplier relationships, the firm’s strong financial outlook and strategic initiatives underpin the Buy rating with a target price of HK$69.5.