Venture Corp cut to "hold" by DBS Vickers; $8.40 target intact

Stock Name: Venture
Company Name: VENTURE CORPORATION LIMITED

Research House: DBS Vickers

Price Call: HOLD

Target Price: 8.40

SINGAPORE (May 4): DBS Vickers has downgraded Venture Corp to "hold" from "buy" as the stock is trading near its price target of $8.40, which is based on a historical mean price-to-earnings multiple of 15 times.

The contract electronics maker's growth prospects in the medium term are also uncertain, given the sluggish economic conditions in the world's major economies, according to DBS Vickers analyst Sachin Mittal.

"European economic growth has remained relatively weak over the past few years, affecting overall orders for Venture," he wrote in a note today.