Maybank Securities' Jarick Seet, prepping for weaker-than-expected 1HFY2023 earnings by Venture Corp, has cut his target price to $15.40 from $16.50.
The manufacturing services company is slated to report results for the six months ended June on Friday, Aug 4.
In his July 27 note, Seet projects Venture to report earnings of $80 million, which will be marginally better versus 1QFY2023 but still weaker than he had initially figured, because of macro uncertainties and weaker demand from clients.
Nonetheless, Seet believes in Venture’s long-term prospects and thinks it is well positioned to capture growth after the slump ends and therefore the stock is thus a "hold" for him.
Another plus point for Venture is its ability to sustain its dividend payout through good times and bad, thanks to a net cash balance of $920.2 million and no bank borrowings.
Seet expects Venture to maintain a full-year payout of 75 cents per share, which translates into a yield of 5.2%.
