Venture - Venture Corp target raised to $10.93 by BNP Paribas; Buy

Stock Name: Venture
Company Name: VENTURE CORPORATION LIMITED
Research House: BNP Paribas

BNP Paribas lifts Venture Corp. (V03.SG) target price to $10.93 from $10.42 after increasing FY10-11 earnings estimates by 11.7%-14.4% to account for contract electronics manufacturer's better-than-expected recovery momentum, lower-than-anticipated raw material shortage and labour increase, says Dow Jones.

"Despite a soft July, the order momentum in August and September was holding up well, according to cross-checks with most of the industry operators, who expressed improved optimism," says BNP Paribas.

BNP says recent slowdown in demand for PCs, other consumer electronics has helped to free up many common components: "We expect the easing of the component shortage to benefit Venture's working capital management and that it will have a greater positive impact on profitability as the new raw material cost is lower than previously forecast."

Keeps Buy call. Shares +0.9% at $9.32.