ECS Holdings: OCBC initiates at Buy with $1.08 TP, implying attractive upside potential of 41.2%, supported by a healthy prospective div yield of 5.0%. Note that ECS, a leading Information and Communications Tech products and services provider, thrives on developing a strategic partnership with major IT vendors and earnings momentum is expected to gain traction moving forward, as ECS recently secured new distributorship agreements, notably Apple's iPad and iPhone distribution rights in China.
Tip ECS's diverse product offerings and extensive distribution channels to lend support to belief that it is poised for a record performance in FY11. OCBC tips double-digit growth for rev and core earnings in FY11 and FY12. Ascribes its historical median P/E of 7X to FY11F core EPS forecast, representing a 25% discount to peers.
No comments:
Post a Comment