Frencken Group (E28.SI) saw its stock price plummet by 3.29% in Tuesday's trading session, as investors reacted to analysts' projections of narrowing margins and tempered growth expectations for the Singapore-based semiconductor-component maker.
DBS Group Research analyst Lee Keng Ling reported that Frencken's third-quarter earnings fell slightly below expectations, primarily due to slower-than-anticipated margin recovery. The company's outlook suggests cautious near-term earnings momentum, influenced by persistent geopolitical uncertainty, tariff risks, and softer European demand in its analytical life-sciences segment.
In response to these challenges, DBS has trimmed its earnings forecasts for Frencken, reducing projections for 2025 and 2026 by 8% and 10%, respectively. The bank also lowered its target price for the stock from S$2.03 to S$1.92, citing reduced revenue momentum and weaker operating leverage. Despite these adjustments, DBS maintains a buy rating on Frencken shares, indicating potential long-term value despite short-term headwinds.
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