[ET Net News Agency, 9 September 2019] J.P. Morgan lowered its target price for
Techtronic Industries (TTI)(00669) to HK$73 from HK$76 and maintained its "overweight"
rating.
The research house said TTI is one of the largest manufacturers of power tools, with 77%
of FY2018 revenue from North America. It delivered a 10% revenue CAGR in FY2010-18 (versus
8% growth of US gross domestic private investment in equipment) and a 25% EPS CAGR,
expanding margins every year in this period.
JPM expects 13-16% EPS growth p.a. in FY2019-21, driven by 10-13% revenue growth p.a.
and continued margin expansion. It thinks the stock deserves a premium for its relatively
stronger and more consistent growth profile and see it as attractive at 22x FY2019 PE
versus 15x/-9-+14% of peers. (KL)