Analysts at Morgan Stanley downgrade Taiwan Glass Corp (ticker: 1802.TW) from "overweight" to "equal weight," while reducing their estimates for the company.
The target price has been revised to NT$26.70.
In a research note published this morning, the analysts mention that the decline in the price of E-glass fabric has been higher-than-expected in the recent past. Taiwan Glass lacks a catalyst for earnings growth in the absence of a sustainable recovery in the prices of E-glass fabric, Morgan Stanley adds. The earnings growth estimates for 2005 and 2006 have been reduced from 8.8% y/y to -13.2% y/y and from 8.1% y/y to flat, respectively.