Jefferies sees semiconductor sector Q1 lift amidst auto, industrial demand dip
04/04/2024 10:48
** Jefferies sees semiconductor equipment sector poised for
solid Q1 performance with robust orders and optimism for
continued growth, despite slight demand softness in automotive
and industrial markets
** "We maintain our forecast for this upcycle to accelerate
through 2024 and peak in H1-25," broker says in note,
highlighting supply chain stability and tech advancements as key
drivers
** Jefferies favors Dutch ASML ASML.AS , ASM ASMI.AS , and
Swiss VAT VACN.S with "buy" recommendation for robust Q1
orders on strong DRAM demand and positive 2024 outlook,
reinforcing sector confidence
** "We expect some incremental weakness in auto and
industrial demand, leading to small further estimate cuts for
STM STMPA.PA , Infineon IFXGn.DE and Melexis MLXS.BR
("hold"), amidst share price resilience"
** Also spotlights Alphawave AWE.L and Aixtron AIXGn.DE
as top small-midcap choices with "buy", expecting strong Q1
order intake and resilience in tech advancements
** Holds cautious view on Ericsson ERICb.ST and Nokia
NOKIA.HE ("hold"), expecting a challenging quarter with global
RAN market weakness and absent demand catalysts, possibly
keeping stocks range-bound
(Reporting by Jesus Calero)
((Jesus.calero@thomsonreuters.com))