Citing the company’s recently published annual report for FY2022, Tng notes that Venture has been lauded by a key customer, Phillip Morris International, with two awards.
Venture Corp might report a 6.9% y-o-y drop in earnings for the seasonally weak 1QFY2023 ended March, but CGS-CIMB’s William Tng has kept his “add” call and $20.10 target price on the blue-chip contract manufacturer.
Tng’s target price is pegged to a 22-year average forward P/E of 15.2x of his FY2024 earnings estimate, and his relatively positive view is premised on how the company is still able to chalk up earnings growth while giving shareholders a dividend yield of 4.22%.
