The analyst rating from Morgan Stanley for ASMPT (00522.HK) is based on several key factors:
1. Positive Revenue Guidance: The company provided guidance for a 14% year-over-year increase in revenue, reaching USD 500 million for 4Q25, which the broker believes is attainable.
2. Strong Performance Expectations: The broker anticipates that revenue for 1Q26 will exceed normal seasonal patterns, projecting it to hit HKD 4 billion.
3. Long-term Growth Potential: Morgan Stanley believes that ASMPT is well-positioned for long-term growth, supported by increased capital expenditures in the OSAT (Outsourced Semiconductor Assembly and Test) business.
4. Accelerating Revenue Growth: The broker projects annual revenue growth to accelerate from 7% in 2025 to 22% in 2026, with sustained growth momentum expected until 2027.
5. Adjusted EPS Forecast: The analyst slightly adjusted its earnings per share (EPS) forecast for the current year, reflecting the anticipated strong performance in 1Q26.
6. Increased Target Price: The target price for ASMPT was raised from HKD 100 to HKD 120, reinforcing the positive outlook.
Overall, these factors led Morgan Stanley to maintain an Overweight rating on the stock.
