Morgan Stanley raises target for Largan Precision stock to TWD 9,040

Published on 10/21/2026 at 12:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q3 margin fell to 42.21 percent from 49.41 percent. Largan Precision stock has a TWD 9,040 Morgan Stanley target dated October 13, 2026.

Margins and analyst views

Morgan Stanley set a TWD 9,040 target on October 13, 2026.
Third-quarter gross margin fell to 42.21 percent in the period ended September 30, 2026.
Largan Precision had a TWD 807.0 billion market capitalization as of October 21, 2026.

Largan Precision, TW0003008009, Illustration mit AI erstellt.

Largan Precision (ISIN TW0003008009) faces a sharper margin test after third-quarter gross margin fell to 42.21 percent from 49.41 percent in the previous quarter. On October 13, 2026, Morgan Stanley upgraded the stock to Overweight and raised its target from TWD 7,100 to TWD 9,040, as reported by MarketScreener.

Quarterly pressure meets new capacity

Quartr summarized the October 8, 2026 earnings release with third-quarter revenue of TWD 15.65082 billion, down 11 percent year over year. Net income was TWD 5.182451 billion, while earnings per share came to TWD 39.62. For the first nine months of 2026, revenue rose 2 percent year over year to TWD 44.859658 billion and net income increased 10 percent to TWD 15.975633 billion.

The margin decline has a specific operational explanation. Taipei Times reported on October 9, 2026 that lower yields on new smartphone camera lenses and higher green-energy costs weighed on profitability. Capital expenditure reached TWD 8.18 billion in the third quarter, mainly for land and factory purchases linked to fiber-array unit expansion.

Three milestones show the transition

The recent chronology is clear: on October 8, 2026, Largan reported TWD 15.65082 billion in quarterly revenue; on October 12, 2026, Goldman Sachs raised its target from TWD 6,263 to TWD 11,000; on October 13, 2026, Morgan Stanley moved its target from TWD 7,100 to TWD 9,040. The Goldman Sachs change is documented in the company topic record, while the Morgan Stanley action is reported by MarketScreener.

What does 42.21 percent mean?

The gross-margin figure puts the smartphone lens business under pressure just as Largan builds a second growth path. Taipei Times reported that Largan completed a trial automated fiber-array line after customer certification and plans to complete its first fiber-array-unit production line by mid-2027, with volume shipments expected in the second half of 2027. The next milestones are mid-2027 for production capacity and the second half of 2027 for volume shipments.

Market value remains substantial

Largan Precision last traded at TWD 6,170 on the Taiwan Stock Exchange at 1:30 p.m. CST on October 21, 2026. The company had a TWD 807.0 billion market capitalization and a TWD 2,020 to TWD 7,995 52-week range as of the same date. The combination of a 42.21 percent quarterly margin and higher fiber-array investment leaves investors weighing near-term smartphone profitability against a longer-term optical-components expansion.