[ET Net News Agency, 8 February 2018] Morgan Stanley lifted its target price for ASM
Pacific (00522) to HK$135 from HK$125, and upgraded its rating to "overweight" from
"equal-weight".
The research house said ASM Pacific and Vanguard are the two stocks it sees benefiting
the most from fast-growing auto semi demand in the next two years, given their >20% of
revenue exposure.
It said ASM has underperformed HSI by 20ppt (HSI +14% versus ASM Pacific -6%) since
November 2017, given the semi inventory digestion (caused by smartphone demand weakness).
Morgan thinks the recent market correction has presented a good entry point into the
stock; ASM has a strong position in supplying SMT (surface mounting technology; placing
chips or passive components onto PCB boards) equipment to key car module makers such as
Continental, which is committed to growing capex in the coming years (20% Y/Y increase in
2017 and estimated by Continental to grow to 8% of revenue in 2018 from 5% in 2015). (KL)
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00522 ASMPT
Nominal 
101.900 +6.450 (+6.757%) Others
08/02/2018 15:19
[I-bank focus]Morgan upgrades ASM Pacific (00522) to HK$135
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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