Nomura raises Avalon Technologies target to Rs 2,767 after joint venture with German EMS firm Zollner Elektronic AG
Avalon Technologies shares rose 6% as Nomura increased its valuation target following a strategic partnership for manufacturing in India.
Shares of Avalon Technologies jumped 6% on the Bombay Stock Exchange to reach Rs 2,326. Nomura Securities raised its price target for the stock from Rs 2,211 to Rs 2,767. The broker maintains a Buy rating and notes 23% upside remains available from current levels. The valuation increase stems from a joint venture announced between Avalon and Zollner Elektronic AG. Zollner is a leading European electronics manufacturing services firm based in Germany with operations in 17 international locations. It holds a 51% share in the new entity, while Avalon plans to purchase an additional 2% stake three years after commercial production begins under specific conditions. The partnership aims to cover PCBA, box-build, and system integration manufacturing for sectors including healthcare, life sciences, test and measurement, rail, and industrial applications. Nomura stated that entering these verticals provides access to global customers and supports expansion into Europe.
