＜Research＞BofAS Upgrades SUNNY OPTICAL (02382.HK) to Buy, Hikes TP to $67

　　BofA Securities upgraded the rating on SUNNY OPTICAL (02382.HK) +0.600 (+1.262%) Short selling $165.61M; Ratio 33.892% to Buy from Neutral in a recent report, citing the recovery of its profit margins driven by upgraded specifications of flagship models and improvement in its product portfolio. With the industry trend improving, the broker expected the company's earnings to recover and continue to grow this year, with a compound annual growth rate of 25% from 2024 to 2026.

　　BofAS raised its 2024-26 earnings forecast for SUNNY by 20-27% to reflect the improved margins. The broker also hiked its target price from $51 to $67 after the valuation basis increase, now equivalent to 25x 2025 P/E, which is close to the historical trading average and in line with the cyclic rise in 2019-20. Near-term catalysts include potential earnings beat and 1H24 results announcement.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-06-25 16:25.)