On October 10th, Morgan Stanley released a research report, stating that $SUNNY OPTICAL (02382.HK)$ "Shareholding" rating, raised its target price from 59 Hong Kong dollars to 72 Hong Kong dollars.

Largan Precision achieved record revenue of 7 billion New Taiwan dollars in August, but experienced a decline in September, indicating that the positive impact of its periscope business has been mostly reflected. Hence, the company is expected to have fewer positive surprises in the future, leading to a downgrade of its target price from NT$3800 to NT$2800 and a rating change from 'shareholding' to 'market perform'. The bank also expects Largan Precision to report a strong performance in the third quarter in November, advising investors to seize the opportunity to exit for profit and switch to Sunny Optical Technology.

The bank believes that Sunny Optical has a better market position. Despite the company's weak shipments in the past few months, which may dampen investor expectations, the bank expects improvements in the company's performance in the first quarter of next year, supporting a revaluation. It also anticipates a potential recovery in gross profit and the prospect of gaining more market share from North American customers, which would serve as another positive catalyst.