HTC One seen as HTC’s savior, revenue expected to increase 50% in Q2
HTC may have turned a corner with its latest flagship smartphone and its worst days could be behind it. Alvin Kwock of J.P. Morgan Securities believes the HTC One is the company’s “last chance for a turnaround,” adding that improved supply will help the struggling smartphone vendor see a sharp rise in revenues this quarter. The analyst upgraded shares of HTC’s stock to Neutral from Underweight and more than doubled his original price target of NT$160 ($5.35) to NT$330 ($11), citing strong anticipated sales of the new smartphone.
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“We have previously said that the new ‘One’ is HTC’s last chance for a turnaround — we now think HTC has done enough to at least see a mini-turnaround,” Kwock wrote in a note to investors, according to Focus Taiwan.
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The analyst said that recent supply chain checks have suggested that HTC’s supply issues have “significantly improved in the last two weeks” and because of that, the company’s second-quarter revenue could increase more than 50% from last quarter. Monthly shipments of the HTC One are expected to grow from 300,000 units in March to 1.2 million units in April and more than 2 million units by May.
Kwock warned that HTC must still battle Samsung and the impending release of the Galaxy S4, however.
This article was originally published on BGR.com
