[ET Net News Agency, 30 October 2020] CLSA lifted its target price for ASM Pacific
Technology (00522) to HK$87 from HK$84 and upgraded its rating from "sell" to
"underperform" following its underperforming HSI by 12% year-to-date.
As a late-cycle play, ASM's booking is expected to continue to recover in 4Q 2020-1Q
2021 with improving OSAT loading and auto/industrial/smartphone recovery, but the
potential share outperformance windows can be short-lived, the research house said.
In addition, given the high base in 1H and CLSA's view for a cyclical peak in 2Q 2021,
ASM's backlog may face deceleration, which could weigh on share performance based on the
historical pattern. (KL)