ACM Research Sees Strong Growth But May Face International Headwinds

News Snapshot:

PhonlamaiPhoto ACM Research (NASDAQ:ACMR) experienced a strong FY23 as the firm realized significant sales growth across all segments for their cleaning, plating, and furnace technologies. Management is currently expanding operations internationally and anticipates the completion of their Lingang facility in Mainland China in mid-2024, further bolstering their footprint across the semiconductor manufacturing process. Through international expansion, I believe ACM can reach management’s $1b revenue target by eFY26 and anticipate modest margin expansion as their sales scale following near-term headwinds in eFY24. I provide ACMR shares a BUY recommendation with a price target of $43.17/share at 2.79x eFY26 net sales. Operations...