Delta Jumps to Highest Since May 2011 on Earnings: Taipei Mover
Delta Electronics Inc. (2308) surged to an almost two-year high in Taipei trading after earnings beat analyst estimates and Credit Suisse Group AG and Macquarie Group Ltd. recommended buying the shares.
Delta, a maker of power-supply packs for notebook computers, jumped 6.7 percent to NT$119 as of 9:13 a.m. local time, poised for the highest close since May 16, 2011. The benchmark Taiex index advanced 0.5 percent to 8,036.09.
The company reported net income of NT$3.75 billion ($126 million) in the fourth quarter, higher than the median estimate of NT$3.55 billion of 10 analysts surveyed by Bloomberg.
Credit Suisse raised the company to outperform from neutral, saying operating margins are rising while an “improving product mix,” productivity gains and increased automation will help it offset price pressure from customers. Macquarie upgraded the stock to outperform from neutral.
An outperform rating means the brokerage expects the stock’s return to exceed the average among its peers.
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