--- title: "This stock offers ’attractive risk/reward after sell-off’: Macquarie" type: "News" locale: "en" url: "https://longbridge.com/en/news/278281346.md" description: "Analysts at Macquarie have identified Nationgate Holdings (NATGATE), an Asian electronic manufacturing service provider, as offering an attractive risk/reward setup after a 30% stock decline since February. They expect FY26e CPU revenue to reach RM 7.2 billion, with positive inventory growth signaling potential revenue increases. Macquarie maintains an Outperform rating on NATGATE shares with a price target of MYR 1.70, suggesting the stock is oversold and advising clients to buy on dips. They have also adjusted FY26/27e NP estimates down by 21% and 18%, respectively." datetime: "2026-03-08T21:25:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278281346.md) - [en](https://longbridge.com/en/news/278281346.md) - [zh-HK](https://longbridge.com/zh-HK/news/278281346.md) --- # This stock offers ’attractive risk/reward after sell-off’: Macquarie Analysts at Macquarie have identified an Asian electronic manufacturing service-provider whose stock is down around 30% since it reported earnings in Feb, offering an “attractive” risk/reward setup.The company in question, Nationgate Holdings (NATGATE), assembles and tests electronic components, including printed circuit boards, semiconductor devices, and fully assembled electronic products.Based in Malaysia, the company also manufactures equipment such as servers and network switches and provides related services like prototyping, supply-chain management, and logistics for industries including telecommunications, data computing, automotive, and consumer electronics.Macquarie expects FY26e AI server revenue to be impacted by market share loss to Chinese OEMs. However, FY26e CPU revenue is expected to come in at RM 7.2 billion, as Q4 inventories are up 61% QoQ to RM 1.1 billion.“We were encouraged by its inventory trajectory…which we believe signals positive revenue growth in 1Q26. Any AI server sale in FY26e presents upside to our forecasts. Management is working towards securing H200 AI server sale for its existing data computing clients,” the analysts said.The firm also expects upside from higher-margin optical transceiver revenue. The analysts estimate that Coherent revenue will be flat YoY at RM 500 million. The “maiden revenue” from the company’s optical transceiver is likely to come in the second half of the year. 400G to 800G assembling and testing assembling and testing, should “support margin expansion,” the analysts added.There is also a positive read-through from Nvidia’s $4 billion investment into Coherent and Lumentum, which includes a multi-billion dollar purchase agreement.“Concurrently, management is working towards a US JV as its partner to reshore optical transceiver manufacturing to the US (from China), presenting upside to our forecasts,” the analysts added.Coming to the stock’s valuation, the analysts believe shares are oversold. “We advise clients to buy into any dips,” they said.Macquarie has an Outperform rating on NATGATE shares, and a price target of MYR 1.70 per share. This implies an 18x 1-year forward PER, which is slightly below the long-term average of 21x, which according to the firm, is fair.The firm has also lowered its FY26/27e NP by 21% and 18%, respectively. ### Related Stocks - [2721.JP](https://longbridge.com/en/quote/2721.JP.md) ## Related News & Research - [As a New CPU Surge Takes Wall Street, Tiger Global Just Took a New Stake in Intel Stock](https://longbridge.com/en/news/286806428.md) - [AMD’s AI CPU Opportunity Is Getting Bigger and So Is the AI-Driven ‘Boom’ for AMD Stock](https://longbridge.com/en/news/287070921.md) - [Intel Is Supposed to Be in a New CPU Era But Its Losing Market Share to AMD and Arm](https://longbridge.com/en/news/286646639.md) - [Arm gains server CPU share as analysts lift targets](https://longbridge.com/en/news/286420327.md) - [Citi lifts Intel target to $130 on AI CPU boom](https://longbridge.com/en/news/286856766.md)