Wintek Corp. downgraded by J.P. Morgan due to low yield rate challenges for its new products
CNATAIPEI -- Taiwan's Wintek Corp., a touch panel supplier to Apple Inc. and Google Inc., has been downgraded by J.P. Morgan Securities due to yield rate challenges encountered for its new products.
September 4, 2012, 5:52 pm TWN
J.P. Morgan cut its stock rating on Wintek to “underweight” from “neutral” while reducing its target price to NT$12 from NT$14, the brokerage said in a recent report.
Last week, Wintek reported loss per share of NT$0.47 for the second quarter of 2012, well below J.P. Morgan's estimate of NT$0.01 and the market consensus of NT$0.08.
Narci Chang, a Taipei-based analyst at J.P. Morgan, said he believes this margin miss mainly came from the low yield at the initial ramp of new products like Google Nexus 7 tablets, as well as a drop in utilization rate due to iPhone order cuts.