Frencken Group Limited, the Technology sector company, was revisited by a Wall Street analyst today. Analyst John Cheong from UOB Kay Hian maintained a Buy rating on the stock and has a S$2.08 price target.
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John Cheong has given his Buy rating due to a combination of factors that highlight a positive outlook for Frencken Group Limited. The semiconductor segment, a significant part of Frencken’s business, is showing promising signs, including the US allowing Nvidia to sell AI chips to China, TSMC’s strong earnings growth, and Samsung’s substantial deal with Tesla. These developments are expected to benefit Frencken, as they are closely tied to the success of its key customers.
Additionally, Frencken is projected to achieve a 10% year-over-year increase in its 2Q25 earnings, driven by revenue growth in the semiconductor sector and improved gross margins from a better product mix. The company’s cautiously optimistic outlook anticipates moderate revenue growth, with higher revenues in the semiconductor and medical segments. These factors, combined with positive industry trends, support the Buy rating and the increased target price of S$2.08.
In another report released on July 28, CGS-CIMB also reiterated a Buy rating on the stock with a S$1.91 price target.