Morgan Stanley analyst Joseph Moore maintained a Hold rating on Amkor today and set a price target of $28.00.
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Joseph Moore’s rating is based on a combination of factors influencing Amkor’s financial performance. The company has demonstrated strong revenue growth, particularly driven by its smartphone segment, with Apple being a significant contributor. However, despite this positive revenue trajectory, Amkor faces ongoing challenges with its gross margins, which have been under pressure and are expected to recover only gradually.
Additionally, Amkor’s increased capital expenditure to support its Arizona campus expansion is a strategic move, but it also adds to the financial burden. The company’s guidance for the upcoming quarter suggests a decline in gross margins compared to previous periods, which is a concern for sustaining earnings growth. These mixed signals of revenue strength and margin pressure have led Joseph Moore to maintain a Hold rating, reflecting both the potential and the risks associated with Amkor’s current financial outlook.