ACM Research's Repeated Upbeat Quarterly Results, Record Shipments, Product Launches & Order Win Impress Analysts

Needham analyst Quinn Bolton reiterated ACM Research Inc ACMR with a Buy and raised the price target from $12 to $15.
ACMR reported better than expected 4Q22 results. Record shipments of $197 million were a clear standout, with 2022 total shipments reaching $539 million.
Based on prior years, Bolton viewed this figure as a leading indicator for 2023 sales.
Like Applied Materials, Inc AMAT, ACMR saw growth in mature market spending and expects the strength to continue.
ACMR maintained its FY23 guidance range of $515 million - $585 million (versus the analyst's $525 million, up 35% Y/Y).
ACMR introduced its two new products (Track and PECVD) on time, which doubled the company's SAM, with the first revenue likely in mid-2024.
Bolton believes ACMR's continued execution deserves a higher valuation.
Benchmark analyst Mark Miller reiterated a Buy and a $32 price target.
Once again, ACM posted upside results and guided for 40% Y/Y sales growth in 2023. Total shipments were at record levels during the quarter.
Expected growth in China, Europe, and the U.S. will likely grow adjusted EPS by 50% Y/Y in 2023 to $1.24.
For 2023, growth is likely from China-based customers, with share gains in core cleaning tools and ECP and Furnace product cycles.
China customers will likely continue to add or even speed up capacity adds in mature nodes as "made in China" capacity is much lower than local market consumption.
ACMR also anticipates initial sales to the U.S. and European markets.
The firm has two cleaning tools at the U.S. facility of a large U.S.-based manufacturer.
The evaluation is going well, and ACMR is optimistic it will lead to additional orders from them in 2023.
After the quarter ended, ACMR won a first tool order for its Ultra C SAPS-V cleaning tool from a significant Europe-based global semiconductor manufacturer.
ACMR will likely ship the tool to the prospective customer's European facility in the fourth quarter of 2023.
Price Action: ACMR shares traded lower by 8.51% at $10.55 on the last check Monday.

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