Morgan Stanley analyst Charlie Chan maintained a Buy rating on ACM Research today and set a price target of $43.00.
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Charlie Chan has given his Buy rating due to a combination of factors that highlight ACM Research’s potential for growth despite current challenges. The company has experienced a decline in gross margin and shipment delays, which have affected near-term performance. However, Charlie Chan believes that ACM Research is well-positioned to benefit from China’s ongoing semiconductor capacity expansion, particularly in the memory sector, driven by increasing demand for AI applications.
Furthermore, the company’s recent capital raise and strategic initiatives, such as the introduction of new products like the ultra-lith KrF track tool, indicate a strong pipeline that could support future growth. Despite the current shipment softness, Charlie Chan sees ACM Research as a core player in the Chinese semiconductor market, with the potential to capitalize on the anticipated memory super-cycle and localization efforts in the region.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $45.00 price target.