KUALA LUMPUR (Dec 22): OSK Investment Research has upgraded the TECHNOLOGY [] sector to Neutral and said that better HDD pricing could help mitigate losses from the Thailand flood.
It said that against the backdrop of the massive works in progress to restore operations following Thailand’s crippling floods, the worst could well be over.
The research said it had become less bearish on the hard-hit HDD components sector given the ongoing accelerated restoration as well as potential price hike over the immediate term, which could mitigate the earnings pressure from forgone capacity in the short term.
"Hence, we are upgrading our call on the sector to Neutral as the downside risks subside and the supply chain moves towards full restoration, possibly by 3QCY12," it said on Dec 22.
The research house upgraded Eng Teknologi and Notion Vtec from Sell to Neutral, and upped its recommendation on JCY International to Trading Buy from Sell.
It said that against the backdrop of the massive works in progress to restore operations following Thailand’s crippling floods, the worst could well be over.
The research said it had become less bearish on the hard-hit HDD components sector given the ongoing accelerated restoration as well as potential price hike over the immediate term, which could mitigate the earnings pressure from forgone capacity in the short term.
"Hence, we are upgrading our call on the sector to Neutral as the downside risks subside and the supply chain moves towards full restoration, possibly by 3QCY12," it said on Dec 22.
The research house upgraded Eng Teknologi and Notion Vtec from Sell to Neutral, and upped its recommendation on JCY International to Trading Buy from Sell.
