“ASML highlighted that its order backlog has increased to a record €40 billion ($57.1 billion) as of 2022 and guided for a rise of more than 25% in 2023 sales despite possible new curbs on its exports to China,” writes Cheong in his Jan 27 report.
UOB Kay Hian analyst John Cheong has upgraded his call on Frencken Group to “buy” with a higher target price estimate to $1.36 from $1.07 previously. The new target price is pegged to an FY2023 P/E of 10.2x, based on Frencken's mean P/E. This is raised from his previous FY2023 P/E peg of 8x, based on -1 standard deviation (s.d.) of Frencken’s mean P/E previously.
To Cheong, the upgrade comes as the group’s major customer, ASML, reported an earnings growth of 28% y-o-y for the 4QFY2022, which came higher than expected. The earnings beat came as the group was said to be still struggling to meet demands from its top customers, TSMC, Samsung and Intel.
