Brokers' Take

Venture Corp | Buy (upgraded) June 10 close: S$15.70 Target price: S$19.74 Maybank Kim Eng, June 10

We upgrade Venture Corp on a price basis with unchanged earnings estimates and target price. As at Friday, the shares have fallen 18 per cent since late-April amid a broad sector sell-off. Given the earnings volatility, we favour Venture due to its more secure longer-term prospects.

These include the resumption of growth from a broad base of more than 100 customers; and its ability to sustain around a 10 per cent net margin from increased value-add with customers.