Brokerage cuts target price for TSMC before investor conference

Focus Taiwan
Date: 2018/10/15
By: Jeffrey Wu and Frances Huang

Taipei, Oct. 15 (CNA) An Asia-based brokerage has cut its target price for Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, amid caution ahead of a TSMC investor conference on Oct. 18.

While TSMC’s fundamentals remain sound, the Asian securities house said it still lowered the stock’s target price because TSMC could feel the pinch of unfavorable external factors, in particular an interest rate hike cycle by the U.S. Federal Reserve.

In a research note released three days ahead of the investor conference, the brokerage said it has cut its target price for TSMC to NT$211 (US$6.82) from NT$223, and downgraded its recommendation on the stock to “underweight” from “hold.”

On Monday, TSMC shed 2.74 percent to close at the day’s low of NT$230.50 on the Taiwan Stock Exchange amid rising fears over trade tension between the United States and China and concerns over fund outflows.    [FULL  STORY]

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