Title Landmark (3081 TT) Buy, TP: NT$385
  Sinbon (3023 TT) U/G Buy, TP: NT$202
  Parade Technologies (4966 TT): Raise TP to NT$1,473; Maintain Buy
  ESG Note: TXC (3042 TT) Buy: TP: NT$100
  ESG Equity Note: Mediatek (2454 TT) Buy, raise TP to NT$950
  Chenbro Micom (8210 TT) Neutral
  Makalot (1477 TT) U/G Buy, TP: NT$200
  ESG Equity Note: Mediatek (2454 TT) Raise TP to NT$920; Maintain Buy
  Macauto (9951 TT) Buy, TP: NT$90
  ESG Note: Powertech (6239 TT): Downgrade to Neutral
 
More Titles
Title:Largan (3008 TT) Downgrade to Neutral
Download File:3008 TT Largan note 200710--sinopac.pdf 
 
Summary:Downgrade to Neutral; re-enter at ~16x P/E for long-term investment: 1) 2Q20 EPS of NT$37.2 lagged our expectation, and the seasonal rebound in high-end units in 2H20 is going to be softer than expected; therefore, we cut our 2020F EPS by 10.7% to NT$214.91; 2) Downgrade to Neutral: Largan is trading at nearly 19x 2021F P/E; we still see downside risk despite the sharp drop on Friday, JUL 10; our previous rating was Buy with a TP at NT$4,570 (19x 2020F P/E); 3) Re-enter at 16x to enjoy the company¡¯s positive long-term outlook as a leading provider of high-end optical lenses for leading smartphone brands.
  
Date:2020/07/10
Author:TaiwanResearch.com
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