Aztech Systems: Multiple drivers pushing growth
Labels:
Aztech
Broker House: DBS Group Research
Analyst: Sachin Mittal
Price: $0.655
Target : $0.94 (12 Mth)
Recommendation: BUY
Upside: 43.51%
Summary:
Story: We hosted Aztech for “Pulse of Asia” conference where management briefed investors about the company’s prospects.
Point: There were three key takeaways.
Analyst: Sachin Mittal
Price: $0.655
Target : $0.94 (12 Mth)
Recommendation: BUY
Upside: 43.51%
Summary:
Story: We hosted Aztech for “Pulse of Asia” conference where management briefed investors about the company’s prospects.
Point: There were three key takeaways.
- Aztech is poised to benefit from IPTV growth in Europe, US and Asia
- It is about to enter another exciting growth area of 3.5G broadband
- Investors should expect broad-based growth across all business segments with high sustainable margins.
We expect 2Q07 numbers to be moderately positive due to the high base in 2Q06 while on a half yearly basis, we expect to see about 25% growth y-o-y.
Relevance: We are raising our FY08 earnings estimates by about 5%, after factoring in potential revenue from soon-to-be launched products - 3.5G adapters and VDSL modems. Rolling forward to FY08 earnings, we maintain BUY with 12-month target price of S$0.94 pegged at 10.8x FY08 earnings at 10% discount to the peer average of 12x FY08 earnings.
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