Citi has raised its price targets for Eoptolink Technology Inc.,Ltd. (ASX: 300502), Dongshan Precision, and Tianfu Communication, projecting the global optical interconnect industry's total market size could reach $92 billion by 2028, representing a three-year compound annual growth rate of 65%.
Analysts, including Kyna Wong, noted in the report that during this period, average selling prices are expected to see a compound annual growth rate of approximately 18% due to technological upgrades.
The bank raised its target for Eoptolink Technology Inc.,Ltd. by about 98% to 701 yuan, citing benefits from the evolution of 3.2T/NPO (Near-Packaged Optics) technology. The target for Dongshan Precision was increased by about 56% to 350 yuan, reflecting optimism about its market share gains in the optical chip/module sector. The target for Tianfu Communication was lifted by about 32% to 419 yuan, identifying it as a core beneficiary of CPO (Co-Packaged Optics). Conversely, the rating for Taichenguang was downgraded from Buy to Sell, primarily due to risks associated with decoupling from Corning and current high valuations.
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