Stock Upgraded: MMI with target price of 1.11 sgd by DBS Equity Research!

DBS Equity Research said it has raised its target price for MMI Holdings to 1.11 sgd from 0.82 sgd given expectations of much bigger earnings this financial year by the supplier of components for hard-disk drives (HDDs). DBS has raised its estimate of net profit for MMI for the year to June by 54 pct to 44.1 mln usd. DBS said this is because MMI's net profit for the nine months to last March, at 37.37 mln usd, was almost equal to its previous estimate for the full year, it said. "We are confident that MMI is one of the better HDD plays, and is able to ride the growth wave that the HDD segment is currently experiencing," DBS analyst Dinesh Chandiramani said in a note. He added that the stock deserves to trade at a premium, given its strong forward return on equity of 31 pct. At 2.02 pm, MMI was up 0.040 sgd or 5.84 pct at 0.725, on volume of 12.90 mln shares.