Citi Assumes Coverage of AMKR

Citi has assumed coverage of Amkor Technology AMKR, leaving the Buy rating and $10 price target unchanged. In the report, Citi writes, “We assume coverage of AMKR from Tim Arcuri with a Buy (1S) rating, consistent with the prior rating. Integrated circuit (IC) unit growth and continual outsourcing from IDMs to OSATs are the two key drivers for revenue growth in the next few years, and a 15%–20% revenue jump in CQ3 (our model) could serve as a catalyst for the stock to trade up in the near term if our view is borne out. We see 50% upside on the stock to our target of $10 on 5x EV/EBITDA.” AMKR closed at $6.70 yesterday.