Kenanga Research cut its target price for electronics company Unisem (M) Bhd to 0.99 ringgit from 1.32 ringgit, expecting results for the current quarter to be flat due to weakening consumer sentiment.
Consumers are taking a wait-and-see approach amid headwinds in the global economy, Kenanga said in a report on Monday.
“In our view, the company’s net profit for the year may only break even at best,” said Kenanga, which lowered its growth assumptions for Unisem. It maintained a ‘market perform’ call on the stock.
Shares of Unisem were down 0.5 percent at 0.97 ringgit as of 0124 GMT.
Reporting by Al-Zaquan Amer Hamzah in Kuala Lumpur; Editing by Chris Gallagher; email@example.com