CGS International analyst William Tng upgraded the rating on AEM Holdings Ltd. to a Buy yesterday, setting a price target of S$3.14.
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William Tng has given his Buy rating due to a combination of factors, including AEM’s clear earnings inflection and improving balance sheet. The company delivered FY25 revenue and profit that exceeded both his and the market’s expectations, while a sharp improvement in cash flow, lower inventories, and the resumption of dividends signal healthier operations and financial discipline.
Looking ahead, management’s FY26 revenue guidance, underpinned by ramp‑up from AI/HPC customers and a higher-margin test-cell solutions mix, supports a strong rebound in profitability and rising EPS over FY26–28. On this basis, Tng lifts his earnings forecasts, applies a higher valuation multiple in anticipation of the next upcycle, and sees room for further upside despite acknowledging legal and demand-related risks.
According to TipRanks, Tng is ranked #1791 out of 12078 analysts.
In another report released today, DBS also maintained a Buy rating on the stock with a S$3.30 price target.