Investment outlooks for 2026 and A-share company target prices from foreign institutions including Morgan Stanley, Morgan Grenfell, and UBS

According to available information, OmniVision Technologies (OV) is a fabless semiconductor design company specializing in chip design. Per market research firm TrendForce, OV ranks among the world’s top ten fabless semiconductor companies. Its semiconductor design and sales business comprises three major segments: image sensor solutions, display solutions, and analog solutions. Recently, OmniVision launched its new OV50R CMOS image sensor, featuring a 1/1.3-inch optical format, 50-megapixel resolution, and 1.2-μm pixel size—positioned for high-end main-camera applications across smartphones, action cameras, vlog cameras, and portable cameras. The OV50R has completed sampling and is scheduled to enter mass production in Q1 2026, potentially further enhancing the company’s penetration in the premium imaging market. JPMorgan forecasts net profit growth of 33.82% for 2025 and 40.05% for 2026. UBS: Global tech stocks poised for a new rally in 2026! Upgrades ratings on four companies to “Buy”! In its 2026 investment outlook, UBS states that the A-share market stands at a positive inflection point marked by earnings growth and valuation re-rating. It expects A-share earnings growth to accelerate from 6% this year to 8% next year. This acceleration is driven primarily by two factors: first, faster nominal GDP growth and a narrowing year-on-year decline in the Producer Price Index (PPI), which together are expected to boost listed companies’ revenues; second, the implementation of supportive macroeconomic policies and sustained healthy deleveraging across the corporate sector, which may drive a modest recovery in overall profitability. Moreover, the current A-share equity risk premium—above its historical average—implies significant potential for valuation re-rating. Additionally, recent market corrections stem largely from adjustments across the global technology sector and short-term trading congestion—but present an opportune moment to position for medium-term re-rating logic. UBS’s Global Strategy Team believes global tech stocks will enter a new upswing in 2026. Investment themes recommended include technological self-reliance, consumption recovery, sectors benefiting from “anti-overcompetition” policies (e.g., photovoltaics, lithium batteries, chemicals), and Chinese enterprises expanding overseas. Key risks to monitor include escalation of U.S.-China trade tensions, continued property sector weakness, and a potential burst of the global AI bubble. Our analysis shows that since October this year, UBS has issued updated ratings on 196 A-share companies: it maintained “Buy” ratings on 131 companies, upgraded four to “Buy,” and one to “Neutral.” It also initiated coverage on 15 companies for the first time—including Great Wall Motor, Edi Biotech, and Longhua Technology—with “Buy” recommendations on all three. Regarding target price upside, UBS’s latest target price for Aipu Medical stands at RMB 118 per share, compared with the closing price of RMB 61.28 on December 5—implying over 90% upside potential. Morgan Stanley, Goldman Sachs, and Citigroup: A-share valuations remain attractive! Stock selection is key! Wang Ying, Chief China Equity Strategist at Morgan Stanley, noted that in 2025, China’s equity market completed a decisive valuation recovery—driven jointly by strengthened confidence under consumption-supportive and “anti-overcompetition” policies, growing global recognition of Chinese enterprises’ competitiveness, and marginally improved geopolitical conditions. The MSCI China Index P/E ratio rebounded from 9x to over 13x.

Sales rebound across four divisions; RPM’s net profit grows nearly 30% in Q2 FY2025

On January 7, RPM International Inc. (RPM) announced its financial results for the second quarter of fiscal year 2025 (ended November 30, 2024). The data show that RPM achieved net sales of $1.85 billion for the quarter, representing a 3.0% year-on-year increase; net income attributable to RPM was $183.2 million, up 25.9% year-on-year; adjusted diluted earnings per share were $1.39, down 13.9% year-on-year; and adjusted EBIT rose 7.7% to $255.1 million—the highest level on record. Frank C. Sullivan, Chairman and CEO of RPM, stated: “All four of our divisions delivered positive volume growth and collectively achieved record consolidated sales in the second quarter. This marks our 12th consecutive quarter of record adjusted EBIT—a result attributable to our employees’ dedication and the steady progress of our MAP 2025 initiative.” By business segment, RPM’s Construction Products Group, Performance Coatings Group, Specialty Products Group, and Consumer Group all posted organic sales growth during the quarter. “We have successfully captured specific organic growth opportunities within the repair and maintenance space—particularly through technical solutions for high-performance construction projects. In addition, our businesses serving the residential end-market demonstrated stability and benefited from favorable weather conditions,” added Frank C. Sullivan. Specifically, the Construction Products Group reported sales growth of 4.3% to $690 million; the Performance Coatings Group grew 1.4% year-on-year to $380 million, driven by strong performance in flooring and protective coatings for high-performance construction projects. The Specialty Products Group saw sales rise 4.4% year-on-year to $185 million, supported by robust disaster recovery activity following hurricane events, strong growth in food coatings and additives, and stabilizing demand from professional residential OEM customers. The Consumer Group reported $590 million in sales, reflecting 2.7% organic growth offset by a 0.7% negative impact from foreign currency translation.

UBS Upgrades RPM International to Buy From Neutral, Raises Price Target to $130 From $118

May 27, 2026

UBS upgraded RPM International to Buy, raising the price target to $130 from $118. The decision reflects optimistic growth expectations supported by recent board appointments and positive sentiment from RBC Capital.

www.marketscreener.com

UBS Upgrades RPM International to Buy Rating, Raises Target Price to $130

Moomoo

2026-04-13

RBC Capital raises RPM International stock price target on cost savings

2026-04-13

RPM International, Inc. Opens with 14.94% Gain, Marking Significant Gap Up

2026-04-16

RBC Capital Maintains RPM International (RPM.US) With Buy Rating, Maintains Target Price $130

2026-04-22

RPM International Stock Surpasses 200-Day Moving Average Following Strong Q1 Earnings