Analysts split on Venture’s outlook, even as share price hits one-week high

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DBS and RHB upbeat on improving order momentum, CGSI flags valuation risks from weaker US economic outlook

DBS and RHB upbeat on improving order momentum, CGSI flags valuation risks from weaker US economic outlook

[SINGAPORE] Analysts remain divided on the outlook for Venture Corp , even as its shares rebounded on Wednesday (Nov 11) to hit a one-week high, tracking a broader recovery in technology stocks.

As at the midday trading break on Wednesday, the counter was up 6.5 per cent at S$15.49, its highest level since Nov 4.

Its gains follow that of other technology stocks on Tuesday, with AEM , UMS Integration and CSE Global among the counters to recover after last week’s sell-off.

The Singapore Exchange had attributed the weakness to concerns over artificial intelligence spending, regulation and investment returns that weighed on semiconductor, technology hardware, software and telecommunications stocks.

Venture had also reported a stronger third-quarter performance on Nov 6. Its net profit for the three months ended Sep 30 rose 21.9 per cent year on year to S$67.8 million, amid higher revenue contributions from its key technology business.

Revenue for the period, meanwhile, increased 26 per cent to S$790.4 million. The gains were boosted by a ramp-up in production, as well as market-share gains in its test and measurement instrumentation, networking and communications, and semiconductor-related equipment businesses.

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At least two brokerages remained optimistic on the outlook for Venture.

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