ACMR stock is on a rocket trajectory higher after several analysts raised their price targets on the stock.
Craig-Hallum analyst Christian Schwab, who has a Buy rating on the stock, raised his price target for ACM Research to $31 from $25 given the increased topline growth expectations and the valuation of the company’s recent Chinese private equity investments.
Roth Capital analyst Suji Desilva, who has a Buy rating on the stock, raised his price target to $32 from $22 as he is encouraged by the company’s positive preannouncement of Q4 slightly above prior expectations. More importantly, the analyst is “very encouraged” by the “solid 2020 revenue guidance reflecting strong growth and visibility for the company.”
Benchmark analyst Mark Miller who also has a buy rating on the stock, raised his price target on ACM Research shares to $30 from $19 after the company updated its 2019 guidance and provided its outlook for 2020.
Stifel analyst Patrick Ho, who has a Buy rating on the stock, raised his price target for ACM Research to $30 from $22 saying that more upside is likely because of the strong wafer fab equipment market. Further, ACM’s new products will also contribute in 2020, “which can add incrementally to its outlook,” Ho tells investors in a research note.
On January 13, 2020, ACM Research, Inc. (NASDAQ: ACMR), a leading supplier of wafer cleaning technologies for advanced semiconductor devices, today announced that preliminary unaudited revenue for the full year 2019 is expected to be in the range of $105 million to $107 million. This would represent 41% to 43% annual growth, and would equal or exceed the outlook provided in its third quarter 2019 earnings release issued on November 6, 2019.
ACM also announced that it expects revenue for the full year 2020 to be in the range of $130 million to $150 million, which would represent annual growth of between 21% and 43%.
“We expect another year of strong growth in 2020, as we execute on our mission to become a major supplier of equipment to the global semiconductor industry,” said Dr. David Wang, ACM’s CEO. “We anticipate solid growth from our top customers, with incremental contribution from our new Ultra C Tahoe, TEBO, ECP AP and ECP MAP products. The range in our full-year 2020 outlook reflects various spending scenarios of the trajectory for production ramps for our customers, the recovery speed of the DRAM market, and the timing of revenue acceptance for first tools under evaluation in the field.”