On Thursday, JPMorgan upgraded Lasertec Corp. (6920:JP) (OTC: LSRCF) stock from Neutral to Overweight, while maintaining a price target of JPY 40,000. The upgrade follows Lasertec’s announcement of robust order intakes in their fiscal year 6/24 results, which were released on Wednesday, August 7.
The company’s stock had experienced a significant decline of 42% since June 4, underperforming the index, which saw an 11% drop in the same period. This downturn was attributed to negative news affecting major logic foundries, including delays in high-NA and a decrease in capital investment by Intel (NASDAQ:).
However, the latest earnings report revealed a strong order intake, particularly for Lasertec’s leading-edge ACTIS, which saw a year-over-year increase of 159%. This performance has helped alleviate investor concerns and highlighted the competitive strength of Lasertec’s product offerings.
JPMorgan’s analysis suggests that the current momentum behind ACTIS orders is likely to continue, supporting the view that Lasertec’s stock is poised for a recovery after being oversold. The firm’s price target of JPY 40,000 remains unchanged, indicating confidence in Lasertec’s market position and future financial performance.
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