KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) raised the target price of Notion VTec to RM2.50 and reiterated a Buy call.
It said on'' Monday, Jan 24 Samsung had placed an order for 900,000 per month pieces of 2.5-inch base plates by April 2011, more than triple the 250,000 pieces produced currently.
'This is very positive, and combined with the lower than expected decline of 2.5% for average selling price, Notion VTec would be able to achieve breakeven earlier than expected,' it said.
HDBSVR said this could imply that pricing pressure has abated on leaner inventory.
The research house said while it is still too early to suggest the industry is out of the woods, Western Digital (WD) highlighted in its Oct-Dec 2010 analyst's conference call that 2.5 inch volume has surpassed the 50% mark for the first time.
'This implies some migration from 3.5 inch to 2.5 inch form factor which should bode well for 2.5 inch demand,' said HDBSVR.
It said on'' Monday, Jan 24 Samsung had placed an order for 900,000 per month pieces of 2.5-inch base plates by April 2011, more than triple the 250,000 pieces produced currently.
'This is very positive, and combined with the lower than expected decline of 2.5% for average selling price, Notion VTec would be able to achieve breakeven earlier than expected,' it said.
HDBSVR said this could imply that pricing pressure has abated on leaner inventory.
The research house said while it is still too early to suggest the industry is out of the woods, Western Digital (WD) highlighted in its Oct-Dec 2010 analyst's conference call that 2.5 inch volume has surpassed the 50% mark for the first time.
'This implies some migration from 3.5 inch to 2.5 inch form factor which should bode well for 2.5 inch demand,' said HDBSVR.
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