On Friday, Citi revised its stance on Giant Manufacturing Co Ltd. (9921:TT) (OTC: GTMUF), downgrading the stock from Buy to Neutral and adjusting the price target to NT$210.00 from NT$255.00. The change in rating comes amid concerns over the company's market risks and demand forecasts.
The bank cited several factors influencing its decision, including an anticipated rise in market risk within China after substantial growth over the past two and a half years. Additionally, Citi noted that despite improvements in inventory levels, demand in the European and U.S. markets remains tepid.
Citi's analysis pointed to potential earnings shortfalls for Giant Manufacturing in the 2025 fiscal year. The forecast includes a weaker performance in the Chinese market as of September, as well as the impact of low seasonal demand which could lead to profit-taking pressure.
In light of these concerns, Citi has initiated a 30-day negative catalyst watch on the stock, signaling caution to investors regarding the near-term outlook for Giant Manufacturing. This watch is intended to alert investors to the possibility of adverse events or market movements that could affect the stock's performance.
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