Although shares of Hon Hai Precision Industry, the world's biggest contract electronics maker, have faced heavy selling from foreign institutional investors recently, most foreign brokerages maintained their buy ratings on the stock as they are upbeat about the company's revenue growth. As the pay hikes in its Chinese facilities are expected to erode the company's profits, however, most brokerages have lowered the stock's target price, with Citigroup Global Markets cutting its 12-month target to NT$114. Hon Hai climbed NT$2, or 1.79 percent, to close at NT$113.5 on Wednesday. Wang Wan-li, head of Taiwan Research at HSBC Securities, said that he rated Hon Hai 'overweight' because its share prices have plunged about 20 percent in the past month. Wang also pointed out that Hon Hai's revenue this year is expected to rise 32 percent from last year -- benefiting from the growth of orders in flat panel TVs, iPads, iPhones and notebook computers. Wang cut the stock's target price from NT$179 to NT$170, however, saying the pay hikes are expected to increase Hon Hai's cost by NT$24 billion a year, which would reduce its operating profit by 20 percent. Calvin Huang, analyst at Daiwa Securities, was also worried that the increase in labor cost will hurt the company's ability to grab market shares. He maintained an 'underperform' rating for Hon Hai. In addition, JPMorgan Chase cut Hon Hai's target price from NT$175 to NT$148, and Merrill Lynch decreased it from NT$190 to NT$159. But both brokerages kept their buy rating on the stock, according to media reports. Meanwhile, Morgan Stanley expected Hon Hai to stage a rebound in the next two months and set a target price at NT$150, saying the worst was over after the company's share prices fell 20 percent in the past month, the reports said. The highest target price for Hon Hai -- NT$173 -- came from Credit Suisse, which reiterated its 'outperform' rating for the stock, saying the impact from the pay hikes would be less than expected and the overall labor cost would become lower after the company hires more quality workers, a media report said. 