Analyst Charles Shi of Needham maintained a Buy rating on Kulicke & Soffa, boosting the price target to $70.00.
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Charles Shi has given his Buy rating due to a combination of factors related to Kulicke & Soffa’s cyclical upswing and improving fundamentals. The company delivered quarterly revenue at the top of its guidance range, with non-GAAP gross margins also coming in well above management’s expectations, supported by notable momentum in general semiconductor and ball bonder products. Forward guidance was even stronger, with management projecting a meaningful sequential revenue increase driven by both general semiconductor and memory demand, and indicating that the second half of the fiscal year should materially outpace the first half.
Shi also highlights that management’s positive commentary on utilization rates reinforces confidence that an industry recovery is firmly underway. He is modeling very robust growth into FY26, reflecting a strong rebound from the current trough. In addition, he raises gross margin assumptions for the out-year, which lifts his non-GAAP EPS forecast for 2027 and supports a higher valuation. Based on a 22x multiple applied to his updated 2027 EPS estimate, he arrives at a $70 price target and reiterates his Buy recommendation.