Wintek Corp. downgraded by J.P. Morgan due to low yield rate challenges for its new products
September 4, 2012, 5:52 pm TWN
TAIPEI -- 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.
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.