DJ Opple Lighting Shines Bright as Rival Dims -- Market Talk
0432 GMT - Shanghai-based Opple Lighting has had the cloud of price competition hanging over it. But Goldman Sachs sees things improving and demand rising amid an uptick in real-estate activity. It upgrades the stock to buy and increases target 21% to CNY40. Major rival NVC lowered prices online last year, but that hit the firm's 2018 earnings and cash flow. It recently announced it wants to get out of most of China's lighting business, notes Goldman, which boosts revenue estimates for Opple by 3-9% through 2022 and profit views by much more. But shares fell 3% this morning to CNY32.11, erasing the week's gain and returning May's pullback to 6.6%. They're up 15% for 2019. (kevin.kingsbury@wsj.com; @kevinkingsbury)
(END) Dow Jones Newswires
May 22, 2019 00:32 ET (04:32 GMT)
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