Venture Corp shares, following the news, surged by as much as 11.17% to $18.32 ahead of the lunch break on May 6.
Before the result announcement, William Tng of CGS International had raised his target price for the company to $21.78 from $17.04 while maintaining a “buy” call in his report dated April 30. Forecasting earnings per share to grow by an average of 8% from FY2026 to FY2028, his target price values Venture at 23 times of FY2027 forecasted P/E.
The results beat his expectations slightly and he reinforced his call at an unchanged target price with a follow-up report on May 5.
Meanwhile, DBS analyst Lee Keng Ling has upgraded Venture Corporate to a “buy” at a higher target price of $21.80 from the previous $17.90. This valuation is based on an higher forecasted 2027 P/E of 24 times, up from the previous 21 times
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To her, the result was “broadly” in line with expectations and signals early signs of recovery, with momentum expected to pick up through the year.
She notes that Portfolio B, which include the test and measurement, semiconductor and data centre domains, grew revenue by 11.2% y-o-y to $417 million and remain the company’s principal expansion pillars.
For Portfolio A — comprising life science, medtech and lifestyle consumer — which declined in revenue 12.4% to $212 million, she suggests that a recovery in the consumer lifestyle segment could emerge in 2HFY2026, supported by new product introductions aimed at improving user experience and rebuilding volume momentum.
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She believes the quarter marks an “important turnaround” as it delivered the company’s first y-o-y quarterly earnings and revenue growth after three years of decline. “Venture remains an attractive value play, underpinned by a strong balance sheet with over $1 billion in net cash and zero debt,” she states, adding that this cash holding and dividend yield of 4.9% makes the counter “compelling”.
UOB Kay Hian’s John Cheong and Heidi Mo have similarly raised their target price to $20.65 from $18.64, with their “buy” rating maintained. This valuation is pegged to 23.7 times forward FY2027 P/E or 2.5 standard deviations above the long-term historical mean.
In their May 6 report, Cheong and Mo note that results were in line, with revenue growing by 8% on a constant currency basis suggesting strong momentum. Both seemed satisfied with the net margin of 9% which indicated focus on high value-add solutions and cost discipline. Venture’s cash holding of more than $1 billion provides downside protection and capacity for strategic investments, they point out.
On the operational front, they see upcoming growth in Venture’s various business segments including data centre and life science. They believe Venture’s R&D programme positions the business to seize opportunities beyond product/system design and development.
Cheong and Mo raise their target price to reflect “stronger conviction” in the firm’s earnings visibility, balance sheet and upcoming growth drivers.
Shares in Venture traded at $18.32, or 11% higher, at around 11.53 am on May 6.
