AEM - UOB Kay Hian 2023-06-20: Cautious On Rally From AI Hype; Earnings Could Miss On Overoptimistic Estimates

• Downgrade AEM (SGX:AWX) to SELL with an unchanged target price of S$2.87.
• AEM’s one-month share price rally of about 30% was largely driven by the increased interest in AI-related stocks from positive developments in the space since May 23.
• - Read this at SGinvestors.io -

AEM's share price rally of about 30% in a month largely driven by increased interest in AI-related stocks is overdone.

• AEM's share price has rallied along with many semiconductor-related stocks since the strong sales forecast by US-listed Nvidia in late-May 23, which has driven positive development in the AI-related space.
• - Read this at SGinvestors.io -
• AEM’s near-term earnings are expected to remain weak.

AI-related chips account for only a small share of total semiconductor sales with all other segments expected to contract in 2023.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-05-15 AEM - 1Q25 Revenue In Line But 2Q25 Outlook Remains Weak.

Previous report by UOB:
2025-03-03 AEM - 2024 Earnings Above Estimates; Outlook & Valuation Remain Unexciting.

Price targets by 2 other brokers at AEM Target Prices.

Listing of research reports at AEM Analyst Reports.

Relevant links:
AEM Share Price History,
AEM Announcements,
AEM Dividend Payout Dates & Corporate Actions,
AEM News