"We think the share price has priced in a FY2024 recovery," adds Tng, noting that AEM is now trading at 11.4x FY2024 earnings, higher than the sector average of 10x. His new target price is $3.30, down from $3.86 previously.
William Tng of CGS-CIMB has downgraded his call on AEM Holdings, from "add" to "reduce", as he expects the company to reduce its FY2023 revenue guidance when the company reports its 1HFY2023 earnings on Aug 11.
"While we are cognisant of the positive long-term demand for semiconductors, we fear that the recovery in FY24F may be slow," writes Tng in his Aug 7 note.
