Citigroup has issued a research report announcing an upward revision to its profit forecast for ASMPT. The bank increased the target price from HK$125 to HK$145, based on a projected price-to-earnings ratio of 35 times for the second half of 2026 through the first half of 2027. The company continues to streamline its core operations, having decided to divest NEXX. The bank believes that an increasing focus on the back-end semiconductor (SEMI) business could help ASMPT break through its historical valuation range. A "Buy" rating was reaffirmed.
According to the report, ASMPT's fourth-quarter performance last year exceeded both guidance and expectations. The guidance for the first quarter of 2026 also indicates that revenue will be stronger than anticipated, driven by growth in thermal compression bonding and high-end die bonder equipment. Order visibility for the first half of 2026 is improving, with order growth momentum accelerating. The bank believes that with its technological leadership, ASMPT is well-positioned to capitalize on growth in the thermal compression bonding market and gain market share.
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