Semiconductor suppliers set for strong 2021 - Berenberg
07/01/2021 08:04
** According to Berenberg semiconductor suppliers are set
for strong 2021
** The brokerage says suppliers such as VAT Group VACN.S ,
INFICON IFCN.S and XP Power XPP.L benefit from a broad range
of structural trends related to digitisation and rising demand
for semiconductors
** We think there is potential for strong organic growth
averaging in the range of 10-15% over the coming decade and that
2021 will be an above-average year for the industry, it adds
** The brokerage thinks pricing pressure in China is likely
to ease after the impact from initial tenders wears off
** Berenberg says 2021 consensus earnings estimates for VAT,
INFICON and XP Power are too low, and reiterates "buy" on all
three
** It names INFICON as its preferred Swiss choice, thanks to
its strategic commitment to China and more attractive valuation
- raises price target by 18% to CHF 1,000
** Berenberg ups VAT's price target by 23% to CHF 245, as it
believes the company's share price will continue to be driven by
positive EPS momentum
((joanna.wodzicka@tr.com))