AEM has been back in favour with many in the market in recent weeks as its turnaround story has become increasingly clear. On April 25, Tng raised his target price from $4.86 to $10.15 — topping his peers’ by a wide margin. Other analysts such as Amanda Tan of DBS Group Research, and the Jefferies’ duo of Joanna Cheah and Wei Han Ang are similarly upbeat, but with more conservative respective target prices of $8.90 and $8.88 respectively. Besides higher earnings expectations, Tng has applied a higher valuation multiple to bring AEM’s valuation to what its peers are already fetching.
Analysts aren’t just observers of the market — they can influence share prices. Yet when they revise their views on a stock, changes to target prices are often incremental, with further adjustments made in subsequent reports.
William Tng of CGS International, who has nearly three decades of experience, believes there is no need to be overly cautious about what he sees as strong growth stories. In two bold calls this past week, he more than doubled his target prices on two counters: chip tester AEM Holdings and ISDN Holdings.
