Frencken Group's net margins are set to narrow as volume recovery moderates across its key segments, says DBS Group Research's Lee Keng Ling in a note. The Singapore semiconductor-component maker's 3Q earnings were slightly below her expectations on slower-than-expected margin recovery, the analyst says.

The company's outlook points to cautious near-term earnings momentum on persistent geopolitical uncertainty, tariff risks and softer European demand in its analytical life-sciences segment, she adds. DBS trims its 2025 and 2026 earnings forecasts by 8% and 10%, respectively, to reflect near-term softness. Projected net margins were also lowered by a few percentage points on reduced revenue momentum and weaker operating leverage. The bank cuts its target price to S$1.92 from S$2.03 but maintains a buy rating. Shares fall 1.3% to S$1.50.