Stifel starts Technoprobe at 'hold' on 'unique' position despite near term sales decline

FormFactor

11/09/2023 09:08

** Stifel starts Italian probe card maker Technoprobe
 TPRO.MI  with a "hold" rating citing a "unique" position as the
technological leader in probe cards despite a near term decline
in sales and earnings
    ** "Acknowledging the longer-term positive fundamentals, our
Hold rating is based on what we consider to be a fair
valuation", it says
    ** Stifel says the group has a market share of about 60% in
a duopoly with US-based FormFactor  FORM.O  and can benefit from
developments in 5G communication, AI and edge computing
    ** However, it expects a decline in sales of about 20% this
year, driven by challenges in the semiconductor industry
    ** The broker sees a rebound in the industry starting in
2024, and anticipates a sales CAGR of about 12% for 2023-28 for
the group
    ** Stifel gives Technoprobe a target price of 7.60 euros 
($8.15) 
    ** Out of 4 analysts that cover Technoprobe, ​one rates it
"strong buy", and three rate it "hold"

($1 = 0.9321 euros)

 (Reporting by Alessandro Parodi)
 ((alessandro.parodi@thomsonreuters.com))