ACMR stock is still moving higher on January 27, 2020, after the company reported preliminary numbers which resulted in a wave of positive analyst actions.
It all started on January 13, 2020, when ACM Research (NASDAQ: ACMR), a leading supplier of wafer cleaning technologies for advanced semiconductor devices, 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.”
ACM plans to release its fourth quarter and full year 2019 financial results in early March 2020.
Next came the wave of positive analyst actions.
On January 14, 2020, Stifel analyst Patrick Ho raised his price target for ACM Research to $30 from $22 saying preannounced modest upside to its December quarter but provided a higher than expected initial outlook for 2020. The analyst believes the upside is indicative of the “strong” wafer fab equipment recovery scenario. Further, ACM’s new products will also contribute in 2020, “which can add incrementally to its outlook,” Ho tells investors in a research note. The analyst maintains a Buy rating on the shares.
Benchmark analyst Mark Miller raised his price target on ACM Research shares to $30 from $19 after the company updated its 2019 guidance and provided its 2020 outlook. Miller keeps a Buy rating on ACM Research shares. Based on the company’s forecast, he has raised his non-GAAP EPS forecast for 2020 to $1.34 from 94c, leading to his increased target.
Roth Capital analyst Suji Desilva raised his price target to $32 from $22 as he is encouraged by the company’s positive preannouncement of Q4 slightly above prior expectations. He maintains a Buy rating on the shares. Suji likes the solid 2020 revenue guidance reflecting strong growth and visibility for the company.
Craig-Hallum analyst Christian Schwab 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. Christian has a Buy rating on ACMR stock.
Morgan Stanley initiated coverage of ACM Research with an Overweight rating and $45 price target.
Nomura Instinet analyst Donnie Teng raised his price target for ACM Research to $70 from $33 and keeps a Buy rating on the shares. Donnie expects the potential recovery of DRAM capex in the second half of 2020 to push the company’s sales higher.