CIMB Research and DBS Vickers downgraded Broadway Industrial Group after the technology components manufacturer posted weak third-quarter earnings on sluggish demand and high costs.
Excluding exceptional items, Broadway incurred a loss in the third quarter due to a steep decline in both hard disk drives and non-component-related businesses, CIMB noted.
CIMB said though Broadway trades at a low price-to-book value, it sees few re-rating catalysts given the tough operating environment over the next few quarters. It downgraded Broadway to ‘underperform’ from ‘outperform’ and cut its target price to $0.27 from $0.46.
DBS Vickers cut its earnings estimates by 38% for 2012 fiscal year and by 29% for 2013, citing persistent margin pressure and uncertain HDD recovery. It downgraded Broadway to ‘fully valued’ and reduced its target price to $0.26 from $0.38.
No comments:
Post a Comment