Techtronic Ind (00669) is forecasted by Citigroup to have a 10% growth in normal sales revenue by 2025, and is expected to have an upward trend in operating gross profit margin and reach 10% by 2026.
According to CITIC Lyon Securities, Techtronic Ind (00669) is rated as a high certainty buy with a target price of HKD 138.
The report states that the company is more confident in its business, and due to the CEO's departure, the stock price has fallen from a top reversal, presenting a good buying opportunity. It believes that the fundamental factors are still strong, and the management team is solid. After meeting with the management team, it believes that the team is capable, and believes that the company is entering a multi-year upward cycle, with performance still being the main catalyst.
The bank forecasts that the company's normal sales revenue will increase by 10% in 2025, and its operating gross profit margin is expected to trend higher, reaching 10% in 2026. It also believes that Techtronic Ind can enjoy a higher premium than its peers Stanley Agriculture Group (SWK) and Makita. Relative to Techtronic Ind's current market price, the forecasted P/E ratios are 19.7 times for 2024, 16.1 times for 2025, and 13.5 times for 2026.