February 27, 2023 1:34 PM | 2 min read
- Needham analyst Quinn Bolton reiterated ACM Research Inc ACMR with a Buy and raised the price target from $12 to $15.
- ACMR reported better than expected 4Q22 results. Record shipments of $197 million were a clear standout, with 2022 total shipments reaching $539 million.
- Based on prior years, Bolton viewed this figure as a leading indicator for 2023 sales.
- Like Applied Materials, Inc AMAT, ACMR saw growth in mature market spending and expects the strength to continue.
- ACMR maintained its FY23 guidance range of $515 million – $585 million (versus the analyst’s $525 million, up 35% Y/Y).
- ACMR introduced its two new products (Track and PECVD) on time, which doubled the company’s SAM, with the first revenue likely in mid-2024.
- Bolton believes ACMR’s continued execution deserves a higher valuation.
- Benchmark analyst Mark Miller reiterated a Buy and a $32 price target.
- Once again, ACM posted upside results and guided for 40% Y/Y sales growth in 2023. Total shipments were at record levels during the quarter.
- Expected growth in China, Europe, and the U.S. will likely grow adjusted EPS by 50% Y/Y in 2023 to $1.24.
- For 2023, growth is likely from China-based customers, with share gains in core cleaning tools and ECP and Furnace product cycles.
- China customers will likely continue to add or even speed up capacity adds in mature nodes as “made in China” capacity is much lower than local market consumption.
- ACMR also anticipates initial sales to the U.S. and European markets.
- The firm has two cleaning tools at the U.S. facility of a large U.S.-based manufacturer.
- The evaluation is going well, and ACMR is optimistic it will lead to additional orders from them in 2023.
- After the quarter ended, ACMR won a first tool order for its Ultra C SAPS-V cleaning tool from a significant Europe-based global semiconductor manufacturer.
- ACMR will likely ship the tool to the prospective customer’s European facility in the fourth quarter of 2023.
- Price Action: ACMR shares traded lower by 8.51% at $10.55 on the last check Monday.
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