Bullish Before ELSOFT’s Rally, Cautious Before Its Retreat—Which Stock Does the No.1 Tech Analyst Back for 70% Upside?
Octopaul AI ·
Elsoft Research’s share price has trended lower over the past few years, briefly touching RM0.17 in late June this year—its lowest level since June 2014. Against this backdrop, TA Securities analyst Chan Mun Chun upgraded Elsoft Research from “Hold” to “Buy” on July 2. The stock subsequently rebounded, reaching an intraday high of RM0.39 on August 14—100% above its RM0.195 closing price on the upgrade date.
At the time, Chan noted that Elsoft Research had fallen 31% year to date, making its valuation and potential returns more attractive. Together with an expected earnings recovery, this prompted his upgrade to “Buy”.
Chan also adjusted his stance after the rally, downgrading Elsoft Research from “Buy” to “Hold” on August 11. Although the share price continued rising over the next few trading sessions, it subsequently retreated to a low of RM0.24 on September 17—28% below its RM0.335 closing price on the downgrade date.
His more cautious stance following the rally was subsequently supported by the pullback.
Chan remained positive on growth in the medical business over the coming quarters, raising his target price from RM0.27 to RM0.32. However, the strong share-price rally had left limited further upside, prompting the downgrade to “Hold”. The change primarily reflected valuation and potential returns rather than a broadly negative view of the company’s business prospects.
In his latest report dated September 18, Chan maintained “Hold” on Elsoft Research. He noted that although AI and data-centre investment continued to support semiconductor industry growth, the recovery remained uneven. Weak sales of the company’s conventional automated test equipment continued to weigh on earnings. Based on its RM0.285 closing price on October 30, his latest target price implies 12% potential downside.
Chan’s broader track record in technology stocks also stands out. According to StockTipRatings data, he currently ranks first among 21 analysts covering the technology sector, with an Expert Rating of 76%, a 1-year average return of 15% and a success rate of 70%.
Beyond Elsoft Research, Chan’s two rating changes on Unisem (M) in the first half of this year also aligned with subsequent share-price movements.
After he upgraded Unisem (M) to “Buy” on January 15, the stock climbed from its closing price of RM3.35 that day to a high of RM5.38, gaining 61%. On June 4, he downgraded it to “Sell”. The stock subsequently fell from its RM5.07 closing price on the downgrade date to a low of RM4.32—a decline of 15%.
Following the correction, Chan upgraded Unisem (M) again from “Hold” to “Buy” on September 18, with a RM4.81 target price. He believed the pullback had made potential returns more attractive, while growing AI and data-centre demand could support its packaging and testing business and drive an earnings recovery. Based on its RM4.09 closing price on October 30, the target implies 17.6% potential upside.
Which Stocks Has Chan Upgraded—and Which Offers Nearly 70% Upside?
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