[ET Net News Agency, 21 September 2018] Morgan Stanley lowered its target price for ASM
Pacific (00522) to HK$85 from HK$120, and downgraded its rating to "equal-weight" from
"overweight".
The research house said its previous rating on ASM was based on its surface mount
technology (SMT) business, and while Morgan believes the long-term trends for this are
still intact, they face some delays.
Morgan thinks it will be difficult for the stock to re-rate in the near term given
uncertainties, such as substrate-like printed circuit board (PCB) adoption and electric
vehicle (EV) sales for its SMT business and 3D sensing and triple camera adoption and
China OSAT capex for its back-end business.
ASM reported record high 1H results but this is unlikely to continue as we are yet to
see bookings bottom out, Morgan noted. It cut its EPS estimates by 1% in 2018, 23% in 2019
and 24% in 2020. The key reason for these significant cuts is lackluster demand going into
4Q 2018 and 1H 2019. (KL)
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00522 ASMPT
Nominal 
79.000 +0.600 (+0.765%) Others
21/09/2018 17:42
[I-bank focus]Morgan downgrades ASM Pacific (00522) to HK$85
| Remark: | Real time quote last updated: 19/09/2024 17:59 |
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