HTC
How to build a differentiated earnings call from an industry-structure thesis, then size it against consensus.
- Rating
- Price target
- TWD 1,100
- Published
- October 12, 2010
- Length
- 50 pages
- Sector
- Smartphones
- Market
- Taiwan
What the analyst argued
Bernstein initiated HTC at Outperform with a TWD 1,100 target, arguing Android had moved the key success factors in handsets to software and first-mover speed, which disadvantaged large incumbents like Nokia and gave sub-scale branded players a second life. HTC had the best technical capabilities, a low Taiwan cost base and fast-growing brand equity, so Bernstein forecast EPS 26% above consensus for 2011 and 45% for 2012, with margins expanding rather than compressing. The target equated to 14.8x 2011 earnings and was supported by a DCF.
Lead analysts: Pierre Ferragu, Jasmeet Chadha.
Inside the report
- 01Highlights
- 02HTC - Business Snapshot
- 031. The smartphone paradigm and Android
- 042. Implications for Handset Manufacturers: The War of Clones has begun
- 052.2 Two possible scenarios for the smartphone market
- 063. HTC as a very well positioned player
- 074. Growth and profitability improvement potential
- 085. Consensus expects margin compression, at odds with our margin expansion
- 09Valuation (P/E, comparables, DCF)
- 10Income Statement, Balance Sheet, Cash Flow Statement
- P/E
- DCF
- Comparable companies
Includes a multi-year earnings model with the income statement, balance sheet, and cash flow forecasts the valuation is built on.
Read the report
50 pages
Tap the cover to open the PDF.Published by Bernstein on October 12, 2010 and hosted here for educational use; the report and everything in it belongs to Bernstein. The rating, estimates, and price target are the analysts’ view on that date, more than a decade ago, and are not a recommendation today. Copy first uploaded October 5, 2026.
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