Aztech Global's Near-Term Outlook Appears Subdued

Dow Jones
07/30

0303 GMT - Aztech Global's near-term outlook appears subdued, DBS Group Research's Lee Keng Ling says in a research report. Management expects customer demand to stay soft in 2H, with contributions from new projects unlikely to fully offset weaker orders from existing customers, the analyst notes. Gradual ramp-up of the technology company's new-product-introduction pipeline, together with competitive pressures, FX volatility, cost inflation and limited demand visibility, are expected to weigh on revenue growth and margins in near term. DBS downgrades the stock's rating to fully valued from hold and lowers the target price to 0.66 Singapore dollar from 0.93 Singapore dollar. Shares are 2.8% lower at 0.69 Singapore dollar.

 

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