Stifel ups PVA TePla to 'buy', sees two main catalysts in 2024

Pva Tepla AG

04/12/2023 11:44

** Stifel upgrades German industrial equipment maker PVA
TePla  TPEG.DE  to "buy" from "hold", expecting a wafer upcycle
in 2024 and an ongoing capex intensity in metrology
    ** The broker deems metrology as PVA's "value engine" and
says the company has become a leading supplier of metrology
equipment to the semiconductor industry
    ** Taking into account improving capex indications for
advanced packaging applications and the company's guidance
uplift for 2023, Stifel increases its EPS forecast for 2023-25
    ** It adds that while the trend of weak wafer capex and
order decline from H1 reversed in Q3, PVA TePla still
underperformed vs semi cap equipment peers in 2023, which the
broker expects to change in 2024
    ** Competitors' results lead the broker to be positive about
the wafer industry, with a "slow but gradual" recovery due to
still elevated inventory levels
    ** "In our view, the risk/reward profile of the shares has
now turned positive going into next year" – Stifel
    ** Out of 10 analysts that cover PVA TePla, seven rate the
stock "strong buy" or "buy," and ​three rate "hold" - LSEG




 (Reporting by Chiara Holzhaeuser)
 ((Chiara.Holzhaeuser@thomsonreuters.com))