Company Name: TAT HONG HOLDINGS LTD
| Research House: Citigroup | Price Call: BUY | Target Price: 1.40 |
Citigroup upgraded Tat Hong Holdings to “buy” from “sell” and raised its target price to $1.40 from $0.64, citing a recovery in equipment sales and rising utilisation levels for the firm’s crawler crane division across the region.
By 10:43 a.m., Tat Hong shares were up 0.5% at $1.03, slightly outperforming the FT ST Small Cap Index which was 0.1% higher. The stock has gained 16.5% so far this year.
Tat Hong’s fourth-quarter net profit nearly tripled to $11.2 million compared with the year-ago period, outperforming consensus estimate, helped by growth across its business segments and higher gross margins, Citi said. The company reported quarterly results on Monday.
DBS Vickers raised its target price on Tat Hong stock to $1.13 from $1.08, but maintained its “hold” rating, citing limited upside at current levels.
“The group remains well-positioned to ride on the robust construction activities in Asia-Pac, which is relatively insulated from the economic slowdown in Europe or US,” DBS wrote in a note to clients.
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