Jefferies ups PVA TePla to 'buy' over growth of metrology business

Pva Tepla AG

14/08/2025 08:50

Corrects fourth bullet point to say EV/EBIT, not EBIT alone

** Jefferies upgrades German semiconductor equipment PVA TePla TPEG.DE to 'buy' from 'hold', citing a stronger-than-expected Q2 order intake, notably from the metrology business

** "Q2 results showed accelerated momentum, led by a strong recovery in metrology and early signs of improvement in the industrial segment," the broker says

** It also shares industry association SEMI's projections on test equipment sales of +23.2% in 2025, adding that the business is well positioned to benefit from cyclical momentum and long term demand for precision in AI applications

** The broker also notes that the company trades at 15.9x its expected next-12-months EV/EBIT, below its 10-years average of 17.9x, and expects further rerating with the expected uptick in metrology

** Out of 10 analysts covering the stock, seven rate it 'strong buy' or 'buy' and three rate it 'hold'

(Reporting by Emanuele Berro)

((Emanuele.Berro@thomsonreuters.com))