AEM - DBS Research 2021-11-25: Poised To Re-Rate Higher

AEM - Poised To Re-Rate Higher

  • AEM's share price has a strong positive correlation with the US semiconductor equipment billings, which is one of the indicators of the industry’s strength. Despite 25 consecutive monthly (y-o-y) increases, preliminary estimates for October indicate a 41.3% y-o-y rise.
  • Intel, AEM’s key customer, believes that the semiconductor industry could double its market size to US$1tr by 2030. It is ready to commit significant investments to ensure that it is at the forefront and we believe that this will translate into higher revenues for AEM in FY22-23F.
  • In the semiconductor industry, investments in the back-end typically lag the front-end by several quarters. After procuring front-end equipment, AEM’s key customer has begun to ramp up its next generation of test handlers and we believe that this will be one of the key drivers of AEM’s growth in FY22F.
  • Maintain BUY call on AEM with a higher target price of S$6.04.

Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Wei Le CHUNG DBS Group Research | Lee Keng LING DBS Research | 2021-11-25
SGX Stock Analyst Report BUY MAINTAIN BUY 6.04 UP 4.980

Previous report by DBS Research:
2021-08-14 AEM Holdings - Endorsement From Temasek

Check out the most recent target prices at AEM Target Prices. Listing of analyst research reports at AEM Analyst Report.

Relevant links:
AEM Share Price History,
AEM Announcements,
AEM Dividends & Corp Actions,
AEM News Articles


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