Morgan Stanley analyst Andy Meng maintained a Buy rating on Sunny Optical Technology (Group) Co (SNPTF – Research Report) today and set a price target of HK$72.00.
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Andy Meng’s rating is based on several compelling factors. One of the primary reasons is the robust growth potential in the vehicle lens segment, which is expected to be a significant growth driver for Sunny Optical Technology. This growth is largely fueled by the increasing sales of electric vehicles (EVs) and the rising penetration of advanced driver-assistance systems (ADAS), both of which require more cameras per vehicle.
Additionally, Sunny Optical is positioned as the largest player in this market, giving it a competitive edge. The company’s February vehicle lens shipments showed a year-over-year increase, indicating strong demand. Despite a month-over-month decline due to a high base effect in January, the overall outlook remains positive, supporting the Buy rating.