Venture: CS note that recent chat with Venture suggests a more cautious tone from two mths ago, driven by uncertainties in the macro backdrop, and coupled with more restraint demand from its key customers.
House lower sales forecasts accordingly and now expect growth to be muted, supported largely by the RSSI and test/measurement product segments. However, see strong cost mgt supporting net margin in FY11, but likely at the lower end of its targeted 6-8% range.
Add that Venture’s fundamentals remain sound, given its focus on high-mix, mid-vol products, and its capex-light model continues to contribute to free cash flow generation, and should achieve expectation of $0.55/share divd payout. House new TP, still based on 12x P/E, with 8% yield support and net cash balance sheet.
No comments:
Post a Comment