AEM's Share-Price Rally Looks Overdone, UOB Kay Hian Says -- Market Talk
0205 GMT - AEM Holdings' recent share-price rally, driven by increased interest in artificial-intelligence-related stocks, looks overdone, UOB Kay Hian analyst John Cheong says in a research report. AI-related chips account for only around 3% of the company's semiconductor sales and won't be able to offset weakness in other segments, such as smartphones and PCs, the analyst says. BCA Research's June review of major semiconductor-consuming sectors gives a subdued picture of global semiconductor demand, the analyst notes. Also, consensus 2023 and 2024 earnings forecasts for the company seem too optimistic, says the brokerage, which downgrades the stock to sell from hold, with an unchanged target price of S$2.87. Shares are 3.5% lower at S$3.56.