Venture (VEMLF – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Paul Chew from Phillip Securities maintained a Hold rating on the stock and has a S$11.80 price target.
Paul Chew has given his Hold rating due to a combination of factors impacting Venture’s financial performance and outlook. The company’s FY24 results fell short of expectations, with revenue and PATMI at 96% of projections and a notable decline in net profit for the fourth quarter. This marks the lowest earnings level in eight years, despite maintaining a high dividend payout ratio.
The short-term business environment remains uncertain, influenced by cautious customer behavior due to tariff uncertainties and potential budget cuts in the US affecting life science equipment spending. Although Venture targets growth in FY25, the guidance may be revised downward given the current challenges. The company’s strong cash flow, substantial net cash position, and share buyback plan provide some support for the stock price, but the lack of growth drivers and continuous revenue decline over the past quarters contribute to the Hold rating.