OE Solutions is surging 15% in early trading on the 12th. Buying is seen flowing in after analysis from the securities industry noted that the company is expected to benefit from U.S. telecom equipment investment.
As of 9:40 a.m. on the 12th, OE Solutions was trading at 35,300 won on the KOSDAQ market, up 4,650 won (15.17%) from the previous session. During the session, it rose to 36,500 won, setting a 1-year high.
Kim Hong-sik, an analyst at Hana Securities, said, "Starting with the AWS-3 re-auction in June in the United States, a series of auctions totaling as much as 800 megahertz (MHz), the largest ever, is scheduled, and as AT&T announced plans to execute $250 billion in capital expenditures (CAPEX) over the next five years, the telecom equipment investment roadmap is taking shape." He then raised the target price for OE Solutions to 50,000 won from 30,000 won.
OE Solutions' track record of supplying large volumes of wireless transceivers to North America in the past is also fueling expectations. Kim said, "Shares related to transceivers for server connections have surged recently, and considering the telecom network ecosystem, it is now time for wireless base-station transceiver names, including OE Solutions, to benefit."