CMB International Securities analyst Alex NG maintained a Buy rating on FIT Hon Teng Limited yesterday and set a price target of HK$4.96.
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Alex NG has given his Buy rating due to a combination of factors that highlight FIT Hon Teng Limited’s promising growth trajectory. The company’s second-quarter results showed a significant business transition, with strategic cloud and automotive segments contributing substantially to sales and demonstrating robust year-over-year growth. Despite some challenges in the smartphone and consumer interconnect segments due to macroeconomic uncertainties, the company’s “3+3 strategy” is expected to drive future growth, particularly in cloud and AI server products, as well as in the AirPods production ramp-up.
Furthermore, the company’s valuation appears attractive, trading at a reasonable price-to-earnings ratio compared to historical averages. The recent rally in the stock price also reflects positive market sentiment towards the company’s advancements in AI server technologies, such as liquid cooling and power solutions. These factors, along with adjusted earnings forecasts and a new target price, underpin Alex NG’s confidence in maintaining a Buy rating for FIT Hon Teng Limited.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a HK$4.50 price target.
6088’s price has also changed moderately for the past six months – from HK$3.740 to HK$4.480, which is a 19.79% increase.