Nomura/Instinet Reiterates Reduce on Hollysys Automation (HOLI)

Nomura/Instinet reiterated a Reduce rating and $12.31 price target on Hollysys Automation Technologies (NASDAQ: HOLI) following the company's 4Q earnings report. Analyst Patrick Xu cut EPS by 4% for FY18F/19F mainly by raising opex assumptions.

Management guided non-GAAP profit of USD100-110mn for FY18F, or roughly USD99-109mn in GAAP profit. Nomura/Instinet thinks the implied ~50% profit growth is aggressive. Management also guided USD130-140mn in non-GAAP profit for FY17 in Aug 2016 and eventually delivered only USD70mn. Management is yet to announce the dividend for FY17 and says it will be 10% or more in terms of payout ratio.

For an analyst ratings summary and ratings history on Hollysys Automation Technologies click here. For more ratings news on Hollysys Automation Technologies click here.

Shares of Hollysys Automation Technologies closed at $19.01 yesterday.

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