[ET Net News Agency, 13 January 2021] Morgan Stanley raised its target price for ASM
Pacific (00522) to HK$115 from HK$86 and maintained its "overweight" rating.
The research house changed its 2020-22 EPS forecasts by -3%, +2%, and +5%, respectively.
It lowered its 2020 gross margin assumption due to stronger-than-expected wire-bonder
demand in 4Q 2020 that carries lower profitability compared to other products in the
company's Semiconductor Solution segment.
Morgan raised its 2021 and 2022 top-line assumptions to factor in the recovery of the
automotive market. The lifted gross margin assumptions are to reflect higher margins
thanks to a higher revenue mix of automotive-related equipment. (KL)