ACM Research Is Expanding Customer Base And Gaining Market Traction, Analysts Observe

Benchmark analyst Mark Miller reiterated ACM Research Inc ACMR with a Buy and a $32 price target.

ACM posted primary upside results for 2Q23 and maintained its sales guidance range of $515 million - $585 million this year. Geographically, the firm is expanding its customer base with eval tools at major U.S. and European fabs. Driven by new fabs, an expected recovery in memory capex, investment by the U.S., Europe, and Japan for internal chip manufacturing, and AI related opportunities, Miller sees continued growth for ACM Research. For 2024, he sees adjusted earnings growing 20% Y/Y to $1.77 per diluted share. 

These results reflected mature, solid node spending by ACM's China customers, market share gains, and penetration of new products and customers. 

Needham analyst Quinn Bolton reiterated ACM Research with a Buy and a $18 price target.

ACM Research reported better-than-expected 2Q23 results across all metrics. 

The company is well positioned in the domestic China market as China's mature node strength continues.

The company is gaining traction within front-end ECP and furnace tools and expects to have furnace tools at a double-digit number of customers by year-end.

It is on track with international expansion at U.S. and European customers and acquiring land for a new R&D and production center to serve the Korean market better.

The company appointed a new auditor (considering both China and U.S.-based auditors). 

After another quarter of solid execution, he believes it's only a matter of time before the market recognizes the value in ACMR shares.

Price Action: ACMR shares are trading higher by 5.82% to $13.27 on the last check Monday.