0109 GMT - AEM Holdings' margins could be squeezed, with its key customer Intel aiming to cut costs by US$3 billion in 2023 and up to US$10 billion by 2025, says Maybank Research analyst Jarick Seet in a research report. Intel could negotiate on margins with key suppliers if things deteriorate and the Singapore provider of semiconductor test solutions may be affected, the analyst says. The weak outlook from its key customer along with a looming recession in Europe and the U.S. suggest a lack of positive catalysts going forward and downside risk is evident, the analyst says. Maybank lowers the stock's rating to sell from hold and cuts the target price to S$3.08 from S$3.43. The stock is 1.5% higher at S$3.41. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
January 10, 2023 20:09 ET (01:09 GMT)
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