TA Securities cuts Unisem to ‘hold’
KUALA LUMPUR, Aug 13 — TA Securities cut its rating on semiconductor manufacturer Unisem Bhd to “hold” from “buy” on the back of lacklustre demand and a weaker industry outlook.
Near-term prospects for the semiconductor industry are not as encouraging as projected by the management and “demand for chips has stayed stubbornly low”, TA said in a note this morning.
TA cut its earnings forecast for the financial year 2012 to RM3 million from RM14 million, and revised its target price to RM1.35 from RM1.68 earlier.
As of 0247 GMT, Unisem’s shares fell 0.83 per cent against the Malaysian benchmark stock index’s 0.23 per cent rise. — Reuters