By: Lo Hsiu-wen and Frances Huang
Taipei, June 27 (CNA) A foreign brokerage has cut its target price on shares of Taiwan-based
PC vendor Acer Inc. (宏碁) amid lingering concerns over its bottom line this year.
The European brokerage, which declined to be named, said that Acer is wary of the possibility of its falling into the red in the second quarter of this year and has been tightening its grip on its inventory.
Such control could lead to Acer to record lower-than-expected shipments and sales for the April-June period and eventually hurt its profitability, the brokerage said. The brokerage has lowered its forecast of Acer’s second-quarter sales by 25 percent to NT$57.4 billion (US$1.85 billion). [FULL STORY]