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Unfollowed no more, Nam Tai Electronics (NTE) was initiated a Buy with $20 price target at...

Unfollowed no more, Nam Tai Electronics (NTE) was initiated a Buy with $20 price target at Topeka yesterday. "We believe the ramp that Nam Tai began in 2012 still has momentum." The sell-side is just starting to pay attention, but SA Pro's Valuable Insights has been on the case for awhile (I, II, III).
Comments (2)
  • Valuable Insights
    , contributor
    Comments (485) | Send Message
     
    While we agree with Topeka's positive view on shares, the report and estimates appear to leave a lot to be desired. Despite management's comments on its most recent conference call (less than two weeks ago) that it expects to be fully utilized before year end - that is, quarterly revenues of $900 million - Topeka's estimate is for $450 million in 4Q, or down y/y. This flies in the face of Topeka's comment that the ramp begun "in 2012 still has momentum." So Topeka's Brian White, of $1,111 Apple price target fame, has set the bar low. We'd expect big beats of his very conservative estimates and significant upside to his $20 price target. Not to mention, that we think NTE's real estate holdings are equal to, if not greater than, NTE's entire market cap.
    12 Feb 2013, 08:17 AM Reply Like
  • zorro2828
    , contributor
    Comments (550) | Send Message
     
    I listened intently to the conference call .. this seems a modest target and the Companies land assets are still a HUGE benefit without being calculated into any NAV .. despite the fact the value seems to be substantial. So I do take defference with the low target, I am glad atleast someone has gotton off their Butt and looked at the Company.. I think $30 is more realistic and as the land becomes utilized .. who know where this puppy could go.. I am Long NTE and am anticpating a triple!
    12 Feb 2013, 08:31 AM Reply Like
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