Suess Microtec rises as Jefferies starts with 'buy'
17/09/2024 07:45
** Shares in Suess Microtec SMHNn.DE are up 3.2% in early
Frankfurt trade after Jefferies initiated coverage of the German
semiconductor company with "buy" and a PT of 76 euros
** The broker points to Suess' multi-layered exposure of
about 30% of sales to AI chip advanced packaging technology
Chip-on-Wafer-Substrate (CoWoS), which makes SUESS a "unique
play in Europe on the NVIDIA/AI supply chain"
** It sees the recent rise in demand for CoWoS continuing to
drive growth over the next one to two years
** A spike in orders in Q3 2023 for Suess' Temporary
Bonder/Debonder tools, which thin out the layers used in High
Bandwidth Memory, should also continue over the next year or
two, the broker says
** Jefferies says Suess is trading at an 18% discount
compared to advanced packaging peers, but adds that should close
as understanding of the growth story improves
** Suess sits at the top of the German small-cap .SDAXI
index
(Reporting by Bernadette Hogg)
((Bernadette.hogg@thomsonreuters.com))