In his July 27 note, Seet projects Venture to report earnings of $80 million, which will be marginally better versus 1QFY2023 but still weaker than he had initially figured, because of macro uncertainties and weaker demand from clients.
Nonetheless, Seet believes in Venture’s long-term prospects and thinks it is well positioned to capture growth after the slump ends and therefore the stock is thus a "hold" for him.
Another plus point for Venture is its ability to sustain its dividend payout through good times and bad, thanks to a net cash balance of $920.2 million and no bank borrowings.
Seet expects Venture to maintain a full-year payout of 75 cents per share, which translates into a yield of 5.2%.
