In a Monday report, analyst Jarick Seet notes that the latest set of results have debunked rumours that I Quit Ordinary Smoking (IQOS) – which formed a large part of Venture’s overall revenue – along with drop in orders or weak Purchasing Managers’ Index (PMI) results would affect the group’s overall profit “severely”.
SINGAPORE (Aug 6): RHB Research is maintaining “buy” on Venture Corp while lowering its target price from $26 to $22.20, which is now pegged to 15.5 times FY18F P/E compared to 17.2 times previously due to the weaker industry outlook.
The research house nonetheless remains bullish on the stock after attending the group’s analyst briefing post the release of its 2Q18 financial results last Friday, which reflected a 40.2% on-year growth in profit despite lower revenue, due to higher margins.
