Stock News: Creative higher on hopes new product will boost sales

Creative Technology was higher on hopes that the company's new product, XMod, will boost its sales, dealers said. In mid-morning trading, Creative Technology was up 0.20 sgd or 1.91 pct at 10.70, with 262,000 shares having changed hands. XMod is an interface that promises to help improve the sound output of personal computers and MP3 players. "As the Xmod is a new device, it is hard to gauge the initial impact, as users will probably need to be educated first. However, given its ease of use, and relatively affordable price of 85 usd, the XMod may throw up an interesting surprise for Creative this year, " Credit Suisse said in a note to clients. Credit Suisse expects Creative to make a net profit of 19.5 mln usd in the year to next June, the company having made a net loss of 118.2 mln usd in the year to last June, and that its net profit will rise to 39 mln usd in the year to June 2008 and to 49.4 mln usd in the year to June 2009. Credit Suisse has an "outperform" rating for Creative Technology, with a target price of 12.90 sgd per share.