Ticonderoga Maintains a 'Neutral' on AU Optronics (AUO); April Sales Fall 8% M/M and Miss Averages but Stock Below TBV
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Price: $2.46 --0%
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 9 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga maintains a 'Neutral' on AU Optronics (NYSE: AUO).
Ticonderoga analyst says, "This morning, AU Optronics (AUO, $8.06, Neutral) reported consolidated sales of NT$33.17 billion for the month of April that declined by 7.7% compared to March and were well below the five-year average increase of 1.6% M/M for the company. Note that AU Optronics is Corning's largest customer at 11% of total 2010 sales and 24% of sales at the wholly owned LCD glass business. This continued LCD sales weakness supports our concern surrounding the LCD industry and specifically our sell-rated stocks such as LG Display (NYSE: LPL)(Sell) and Corning (NYSE: GLW)(Sell) that we believe have further downside. At the same time, we believe this is mostly reflected in AUO's stock price that is hovering around a 52-week low and currently trades at just 78% of 1Q11 tangible book value."
For more ratings news on AU Optronics click here and for the rating history of AU Optronics click here.
Shares of AU Optronics closed at $8.06 yesterday.
Ticonderoga analyst says, "This morning, AU Optronics (AUO, $8.06, Neutral) reported consolidated sales of NT$33.17 billion for the month of April that declined by 7.7% compared to March and were well below the five-year average increase of 1.6% M/M for the company. Note that AU Optronics is Corning's largest customer at 11% of total 2010 sales and 24% of sales at the wholly owned LCD glass business. This continued LCD sales weakness supports our concern surrounding the LCD industry and specifically our sell-rated stocks such as LG Display (NYSE: LPL)(Sell) and Corning (NYSE: GLW)(Sell) that we believe have further downside. At the same time, we believe this is mostly reflected in AUO's stock price that is hovering around a 52-week low and currently trades at just 78% of 1Q11 tangible book value."
For more ratings news on AU Optronics click here and for the rating history of AU Optronics click here.
Shares of AU Optronics closed at $8.06 yesterday.
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