"We expect this to translate to more orders for Frencken, as ASML demands more parts to fulfil its order backlog," state the analysts in their Jan 16 note.
Macquarie analysts Foo Zhiwei and Hanel Tan have initiated coverage on Frencken Group with an "outperform" call and $1.76 target price, with a view that in the second half this year, the company will benefit from a pick up in semiconductor orders from its customers, who are in turn enjoying higher demand for their products driven by growing number of AI data centres.
Citing estimates from Visible Alpha, Foo and Tan note that Frencken's key customer ASML is likely to see orders for its key EUV machines rise from 47 to 54 units.
