[ET Net News Agency, 27 March 2020] Morgan Stanley raised its target price for Sunny
Optical Technology (02382) to HK$150 from HK$98 and double upgraded its rating to
"overweight" from "underweight".
The research house, even in its bear case, still sees lens demand from Android players
growing 3% in 2020, even if global smartphone volume falls 10%. Morgan believes Sunny will
see >3% growth, thanks to greater exposure to the Chinese market. It should also gain
share as smaller players exit the market.
Morgan raised its 2021 EPS forecast by 29% to incorporate higher smartphone volume,
thanks to incremental demand, margin improvement, and to a lesser extent contribution
from vehicle modules. (KL)