JPMorgan Slashes Dixon, Kaynes Targets, Yet Sees Up to 60% Upside Potential

• JPMorgan cut price targets for EMS sector companies Dixon Technologies and Kaynes Technology, but maintained 'Overweight' rating.
• Kaynes Technology's target reduced by 20% (₹7,550 to ₹6,100), still indicating a potential 60% upside.
• Dixon Technologies' target slashed by 30% (₹19,600 to ₹13,700), with a revised 15% upside potential.
• Dixon's YoY earnings growth may be flat due to high base and mobile volume weakness; Kaynes' earnings expected to grow 30% from automotive/industrial strength.
• Earlier, Jefferies also cut targets for both stocks but maintained a bullish outlook, leading to share declines.

Why It Matters: JPMorgan cut targets for Dixon and Kaynes, but both EMS stocks still show significant upside potential.