Nomura Securities Downgraded FoxConn International Holdings
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Price: $10.75 +4.98%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade FXCNY Now!
This morning, Nomura Securities downgraded FoxConn International Holdings (OTC: FXCNY) from Buy to Neutral.
Analyst, Aaron Jeng, said, "Increased outsourcing is benefitting FIH but the deterioration of the existing customer base is happening more quickly than we had previously expected. Until low-end smartphone outsourcing really begins to take off, FIH’s financials seem likely to suffer. Hence we put our Buy case on hold until we see better visibility, and accordingly we downgrade FIH to Neutral. FIH reported 1H12 losses of USD226mn, worse than consensus estimate of a net loss of USD137mn, mainly due to the shrinking scale of sales and high impairment losses. FIH is now trading at 0.8x our 2013F BVPS vs. its historical trough valuation of 0.5x book."
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Analyst, Aaron Jeng, said, "Increased outsourcing is benefitting FIH but the deterioration of the existing customer base is happening more quickly than we had previously expected. Until low-end smartphone outsourcing really begins to take off, FIH’s financials seem likely to suffer. Hence we put our Buy case on hold until we see better visibility, and accordingly we downgrade FIH to Neutral. FIH reported 1H12 losses of USD226mn, worse than consensus estimate of a net loss of USD137mn, mainly due to the shrinking scale of sales and high impairment losses. FIH is now trading at 0.8x our 2013F BVPS vs. its historical trough valuation of 0.5x book."
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