TRADING: SinoPac gave the firm a long-term ‘buy’ rating with a target stock price of NT$490, while Credit Suisse gave it an ‘outperform’ rating with a target of NT$440

Taipei Times
Date: Oct 14, 2019
By: Chen Cheng-hui  /  Staff reporter

As the initial market response to its new 5G system-on-chip (SoC) solutions appears to be positive, 5G represents an opportunity for MediaTek Inc (聯發科) to increase the average selling prices (ASPs) of its products and boost its earnings, analysts said.

Moreover, MediaTek is likely to see its 5G SoC solutions gain better traction among Chinese smartphone original equipment manufacturers (OEMs) beginning next year, they said.

“MediaTek’s 5G SoC development is on schedule and should pave the way for its smooth transition into the 5G era in 2020 and let it capture demand tied to the coming 5G-driven handset replacement cycle,” SinoPac Securities Investment Service Corp (永豐投顧) said in a research note released on Monday.

“The de-Americanization of Chinese vendors’ supply chains would also help boost its handset SoC shipments and stabilize its market share,” SinoPac said.    [FULL  STORY]