Citigroup has issued a research report increasing ASMPT's target price from HK$145 to HK$180, equivalent to a projected 2027 price-to-earnings ratio of 37 times, while maintaining a "Buy" rating. The bank noted that the company delivered a robust performance in the first quarter of this year, with its book-to-bill ratio rising to 1.43, marking a five-year high. The second-quarter guidance also indicates a strong outlook. Citigroup expects the stock to be revalued above historical levels as industry capital expenditure increases and the company refocuses on its core operations. New opportunities are emerging in thermal compression bonding and optoelectronics, which are anticipated to become growth drivers by 2027 and beyond. Additional positive catalysts for the share price may include new customer orders, advancements in HBM and logic technology migration, and the potential divestiture of the SMT business.
Comments