CLSA upgrades Largan Precision stock to Buy

Published on 10/13/2026 at 10:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q3 gross margin fell to 42.21 percent from 49.41 percent. CLSA set a TWD 9,200 target for Largan Precision stock.

Key points in brief

CLSA upgraded Largan Precision to Buy on October 12, 2026, with a TWD 9,200 target.
Third-quarter revenue fell 11.47 percent year over year to TWD 15.65 billion.
Gross margin declined to 42.21 percent from 49.41 percent in the previous quarter.
Customer certification for co-packaged optics supports Largan's data-center expansion.
The average analyst target is TWD 6,070.89, while 13 of 20 ratings are Buy.

Largan Precision, TW0003008009, Illustration mit AI erstellt.

CLSA upgraded Largan Precision stock to Buy on October 12, 2026, according to Investing.com. The analyst listing shows a TWD 9,200 target, putting the call against a weak third quarter and a broad dispersion in expectations.

The upgrade meets a weaker quarter

Taipei Times reported on October 9, 2026, that Largan's third-quarter revenue fell 11.47 percent year over year to TWD 15.65 billion. Net profit declined 27.65 percent to TWD 5.18 billion, while earnings per share fell to TWD 39.62 from TWD 53.05 a year earlier.

The margin pressure was sharper than the revenue decline. Gross margin fell to 42.21 percent from 49.41 percent in the previous quarter and 47.24 percent a year earlier, with lower yields on new smartphone camera lenses and higher green-energy costs cited as factors by Taipei Times.

What does certification mean for growth?

Taiwan News reported on October 13, 2026, that Largan's pilot production line for co-packaged optics had received customer certification. The report said the development helped Largan reach the daily limit-up price of TWD 7,325.00 on the Taiwan Stock Exchange.

The new business is still a forward-looking growth leg rather than a current earnings offset. Taipei Times reported that capital expenditure reached TWD 8.18 billion in the third quarter, mainly for land and factory purchases, while the company plans its first fiber-array production line for the middle of 2027 and volume shipments in the second half of 2027.

Valuation remains divided

Investing.com lists 13 Buy, four Hold and three Sell ratings. Its average 12-month target is TWD 6,070.89, or 17.12 percent below the TWD 7,325.00 reference price shown on the page, while individual targets range from TWD 3,250 to TWD 11,000.

The market capitalization was TWD 951.6 billion on October 13, 2026, and the 52-week range was TWD 2,020.00 to TWD 7,995.00. That valuation leaves the certification story competing with a margin profile that is materially below both the previous quarter and the year-ago quarter.

Three signals now compete

Largan therefore enters the next reporting cycle with three measurable signals: TWD 9,200 from CLSA, TWD 15.65 billion in third-quarter revenue and a 42.21 percent gross margin. The optical-components expansion adds a longer-term data-center angle, but the smartphone lens business remains the earnings base.