Stock downgraded: Magnecomp Int target price cut to 0.96 by UOB Kay Hian!

UOB KayHian said it has cut its target price for Magnecomp International to 0.96 sgd from 1.20 in view of the earnings volatility for the company's HDD suspension assemblies. It noted that significant improvement in sales volume will only be felt from the first quarter of next year, although average selling price is expected to recover in the fourth quarter this year when the new 160 gigabyte/platter 3.5-inch programme from Western Digital goes into mass production. In view of this, UOB KayHian has revised its 2006 net loss forecast from 7. 6 mln sgd to 14 mln sgd, but is keeping its "buy" call on the stock. At 2.22 pm, Magnecomp was flat at 0.785 sgd on trade of 14,000 shares.