Given multiple positive catalysts ahead, John Cheong of UOB Kay Hian has raised his target price for UMS Integration from $1.32 to $1.73.

In his July 16 note, Cheong says UMS is expected to meet his 2QFY2025 earnings estimate of $11 million thanks to health orders from its new customer, while orders from its old customer remain stable.

"UMS’ capability to complete the majority of the manufacturing processes in-house such as plating, anodising, brazing, welding, chemical cleaning and so on have helped it maintain healthy margins and enable it to achieve prompt delivery to its customers," he adds.