In a report released today, Terence Cheng from Morgan Stanley maintained a Buy rating on Techtronic Industries (TTNDF – Research Report), with a price target of HK$116.00.
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Terence Cheng has given his Buy rating due to a combination of factors that highlight Techtronic Industries’ potential for growth and positive performance. A key consideration is the company’s proactive strategy to mitigate tariff risks by pre-stocking essential components, which has already resulted in significant sales growth for its suppliers. This approach is expected to contribute to a favorable earnings outlook, as it indicates strong sell-through and resilience in the company’s supply chain.
Cheng also considers multiple scenarios for Techtronic’s upcoming earnings report, with the most probable scenario suggesting solid revenue growth and operating margin expansion in the latter half of 2024. Additionally, favorable revenue guidance for 2025, supported by stable demand and normal retail inventory levels, further supports the Buy rating. This scenario anticipates a potential share price increase, reinforcing confidence in the company’s market position and financial health.
According to TipRanks, Cheng is a 3-star analyst with an average return of 7.7% and a 71.43% success rate.