[ET Net News Agency, 18 January 2021] Citi Research lifted its target price for Johnson
Electric (00179) to HK$30 from HK$27.2 and maintained its "buy" rating.
The research house believes the pent-up demand on auto hasn't been completely unleashed
yet, so it raised its EPS estimates by 3%-4% in FY2022-23.
Citi said APG (Automotive Products Group) order momentum looks sustainable for the near
term. It believes management is concerned about the supply chain of material rather than
order or capacity at this moment. In addition, IPG (Industry Products Group) order has no
signs of a slowdown yet on new products and improving end-demand despite economic
resumption reducing work-from-home exposure. (KL)