06:10 AM EDT, 05/02/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

In Q1 2024, AUO's net loss widened sharply to TWD3.5 bln (from net loss of TWD1.5 bln in Q4 2023) due mainly to the absence of a one-off tax gain of TWD3.95 bln in the prior quarter. Operating loss remained significant (down slightly to TWD4.9 bln, from TWD5.1 bln) amid continued revenue contraction (-6% Q/Q to TWD59.5 bln), which was supported by increased shipment (+4.1% Q/Q) but partly offset by lower ASP (-1.6% Q/Q). The result was well below our expectations, and we thus slash our 2024 forecast to loss per share (LPS) of TWD7.10 (from LPS of TWD3.20) and lower 2025 EPS to TWD12.10 (from TWD14.87). We now see slower earnings recovery through 2025 driven by (i) prolonged high interest rate environment slowing down global spending recovery on electronics, and (ii) continued threat of new LCD capacities in China pressuring ASP. We maintain our target price at USD5.00 while maintaining our valuation at 0.8x 2024 P/B, in line with AUO's 5-year mean multiple.