On Tuesday, Citi made a bullish move on TCL Technology Group Corp (000100:CH) shares, raising the stock's status from Neutral to Buy. Accompanying the upgrade was a price target increase to RMB4.50, up from the previous RMB4.20. This decision by Citi is grounded in a valuation based on 1.6 times the projected 2024 price-to-book ratio, which aligns with the average for the years 2022-2023.
The analyst at Citi has initiated a 30-day positive catalyst watch for both BOE and TCL Technology Group Corp. This action is taken with the expectation that the planned production halt and stable panel prices in October will contribute to a rise in the stock's price. The prediction is supported by the upcoming release of bi-weekly panel price data from Witsview.
While TCL Technology has received a positive outlook, the same cannot be said for AU Optronics Corp. Citi has decided to maintain a Neutral rating on AU Optronics despite acknowledging that it could benefit from the reduced utilization rates of industry leaders.
Citi's outlook for TCL Technology is notably optimistic, with the anticipation of a stock price increase tied to industry dynamics such as production halts and panel price stabilization. The upgrade and the new price target reflect the firm's confidence in TCL Technology's performance potential in the near future.
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