US Semiconductor Embargo Is Impacting ACM Research, Analyst Slashes Price Target By 26%

US Semiconductor Embargo Is Impacting ACM Research, Analyst Slashes Price Target By 26%
  • Benchmark analyst Mark Miller remained Buy on ACM Research, Inc ACMR and cut the price target from $43 to $32.
  • ACM reported upside results and adjusted its 2023 revenue guidance
  • The firm discussed the impact of the new U.S. restrictions on shipments of equipment that produce advanced memory and logic chips in China. 
  • Most of ACM’s business has been for trailing node chips. 
  • It is not believed that the restrictions will impact ACM’s cleaning tools and most of ACM’s ECP and WLP tools. 
  • He estimates the restrictions will impact ACM’s 2023 sales by 10% to 15%. 
  • He adjusted the forecast for that, which now projects non-GAAP earnings of $1.15 per diluted share on sales of $414 million. 
  • With over 90% of its business going to Chinese customers, mainly DRAM manufacturers, ACM’s shares have been under pressure due to CAPEX cuts by chip manufacturers and, more recently, due to new U.S. restrictions that block exports of advanced chips and related equipment to China, the analyst had said in October
  • Despite these concerns, the shares appear pretty attractive at the current level. 
  • Price Action: ACMR shares traded higher by 29% at $8.52 on the last check Monday.

Posted In: BriefsNewsPrice TargetReiterationSmall CapAnalyst RatingsTech