Brokers' take

Venture Corp > Buy RHB Research Institute, Dec 14 Dec 21 close: S$13.98 Target price: S$19.00

VENTURE suffered a 27 per cent drop in its revenue, mainly due to the impact arising from customers' planned transition to new replacement products and some customers' M&A for the reported quarter, as well as a slowdown in its point of sale (POS) business.

The same factors causing a slowdown in Q3 2018 are likely to contribute positively to a V-shaped recovery in Q4 2018, as these new product introductions will likely occur in Q4. Venture has also managed to secure a few new customers, which will likely contribute to revenue performance in Q4 2018.