Morgan Stanley raises ASMPT target price to 120 yuan, rating "Overweight"

Morgan Stanley published a report stating that ASMPT (00522.HK) expects its revenue guidance for the fourth quarter of last year to increase by 14% year-on-year to USD 500 million, and this target is deemed achievable. The firm anticipates that revenue in the first quarter of this year will exceed normal seasonal levels, reaching HKD 4 billion, with semiconductor solutions expected to rise by 8% quarter-on-quarter. They also believe the company is well-prepared for long-term growth, including businesses such as CoWoS-L and High Bandwidth Memory (HBM).

The firm slightly adjusted its earnings per share forecast for the company this year, mainly due to the expectation of strong performance in the first quarter. They project full-year revenue growth to accelerate from 7% last year to 22%, benefiting from increased capital expenditures in the OSAT business, and expect this revenue growth momentum to continue until 2027. The firm raised its target price from HKD 100 to HKD 120, maintaining a "Buy" rating