[ET Net News Agency, 14 September 2020] UBS Global Research lifted its target price for
Techtronic Industries (TTI)(00669) to HK$120 from HK$91 and maintained its "buy" rating.
The research house turned more positive on TTI's long-term prospects as UBS expects it
to further consolidate its leading position in the cordless power tool market and start
disrupting the power equipment sector (ie, outdoor power equipment and light construction
equipment).
UBS lifted its 2020-22 earnings estimates by 9-13% and assume higher growth beyond 2022.
It noted that TTI is trading at 25x 2021 PE, 3% below Makita's 26x and higher than Stanley
Black & Decker's (SWK) 18x, but its earnings growth is at 2x (20.4% in 2019-22, compared
with peers' 10.2%). Along with its higher 2020 ROE (20.2%, compared with peers' 9.7%), UBS
thinks TTI is still undervalued. (KL)