Thursday, April 20, 2006

Stock Upgraded: Innovalues Precision target price raised to 1.18 sgd by CIMB-GK

CIMB-GK Research said it has raised its target price for electronic components maker Innovalues Precision to 1.18 sgd per share from 0.91 sgd on expectations the company will achieve robust earnings growth over three years. "We believe this valuation is undemanding relative to its 34 pct compound annual growth rate potential over 2005-2008, and relative to its historical price earnings ratio band," CIMB-GK said in a note to clients. "Our recent discussions with management reveal that business remained robust in the first quarter, especially for automotive components. All facilities were operating at close to full capacity, and we believe the company is on track to achieve record earnings in 2006," CIMB-GK said. "We believe there could be upside to our forecasts if the automotive components business takes off," it added. At 9.29 am, Innovalues was up 0.025 sgd or 2.91 pct at 0.885 with 3.30 mln shares traded.

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