[ET Net News Agency, 9 November 2023] Citi raised its target price for Johnson Electric
(00179) to HKD17 from HKD14 and maintained its "buy" rating.
The research house said major downside risks that could cause Johnson Electric to fall
below the target price are (1) worse-than-expected US/EU macro for auto consumption, (2)
pricing pressure to drag down margin on IPG due to excessive channel inventory, (3) longer
time taken to pass on commodity cost inflation to customers, and (4) FX headwinds like
EU/RMB.
Upside risk is better-than-expected ASP inflation on APG and IPG segments and
better-than-expected demand for APG. (RC)