Advantech Co Ltd
2395: XTAI (TWN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
TWD 833.00 | Ygbndg | Lhdsqxdq |
Advantech Earnings: Bookings Seem to Have Bottomed; More Uncertainty From Increasing Investment
We maintain our TWD 361 fair value estimate for narrow-moat Advantech after the company’s third-quarter bookings rebounded slightly thanks to a recovery in industrial Internet of Things in China. Advantech’s upside is limited, as long-term potential in the retail, energy, industrial, and healthcare sectors is priced in and increased research and development spending may dent profitability in the next two to three years.