Kulicke And Soffa Industries Likely To Win Order From Leading Semiconductor Company, Says Bullish Analyst

Kulicke and Soffa Industries Inc. KLIC shares were rising in early trading on Friday, after shedding more than 5% this week.

While reporting earnings, the company announced an order for fluxless TCB from "the world’s leading foundry," which could be chipmaker Taiwan Semiconductor Mfg. Co. Ltd. TSM, according to Needham.

Analyst Charles Shi upgraded the rating for Kulicke and Soffa Industries from Hold to Buy, while establishing a price target of $55.

The Kulicke and Soffa Industries Thesis: Given in order, the company expects TCB revenues to grow by 40%-50% year-on-year in 2025, Shi said in the upgrade note.

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Kulicke and Soffa Industries is expected to generate TCB revenues of around $55 million in 2024, which could now reach as much as $80 million next year, "beating our $70MM estimate by about $10MM," he added.

Rival ASMPT is likely to have failed the TCB qualification at Taiwan Semiconductor and its management said during the third-quarter earnings call that TCB evaluation at the leading foundry "may take another year," the analyst stated.

"To us, the fact that KLIC is already qualified and shipping while ASMPT still has not closed the evaluation means that KLIC has won," he further wrote.

KLIC Price Action: Shares of Kulicke and Soffa Industries rose by 2% to $46.52 at the time of publication on Friday.

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Photo: Screenshot from Kulicke and Soffa video