“We believe that there is still legroom for growth in the semiconductor cycle, and we anticipate a further re-rating towards its historical peak multiple into 2022,” she writes in a Dec 7 report.
DBS Group Research analyst Ling Lee Keng and its Singapore research team has initiated a “buy” rating on Micro-Mechanics Holdings (MMH), and target price of $4.05, offering a potential upside of 28%.
Micro-Mechanics (MMH) is currently trading at 21.9 times FY2022 price-to-earnings (P/E), near +1 standard deviation of its four-year historical average forward P/E, according to Ling.
