Jefferies sees AT&S ready to accelerate momentum, ups to 'buy'

AT & S Austria Technologie & Systemtechnik AG

25/08/2023 09:36

** Jefferies upgrades circuit board- and semiconductor-maker
AT&S to "buy" from "hold," seeing the company now fully prepared
to accelerate business momentum 
    ** It notes AT&S 15% core earnings beat, and highlights the
company's leaner operating structure and a more diversified
customer base
    ** The broker raises its 2023 estimates by 5% for revenue
and 87% for adj. EBITDA, adding that AT&S's adj. EBITDA in Q1
came 53% ahead of Jefferies estimate
    ** These numbers should improve further in the long run, it
says, flagging that AT&S is the only European player in the
integrated circuit substrate market
    ** "The company has an outstanding reputation among key OEMs
(Intel, Apple and AMD), particularly given its focus on quality,
with its product range positioned at the premium end of the
market", says the broker
    ** Jefferies also notes that AT&S shares are cheap,
currently trading at a 50% discount to peers (6x estimated P/E
for 2025)
    ** Of seven analysts cited by Eikon, three rate the stock
"buy", three "hold" and one has a "sell" recommendation  

 (Reporting by Louis van Boxel-Woolf)
 ((Louis.vanBoxel-Woolf@thomsonreuters.com))