“While the semiconductor industry is recovering well, with the latest August shipment data reaching new highs of 20.6% y-o-y, the recovery along the whole technology value chain has been uneven so far,” write Ling, Au and Foo in their Oct 22 report.
DBS Group Research analysts Ling Lee Keng, Jim Au and Foo Fang Boon are keeping their “buy” calls on Venture Corporation (SGX:V03
) and Frencken Group (SGX:E28) at target prices of $16.40 and $1.77 respectively, believing the two companies to be undervalued downstream players in the semiconductor space. Both companies are also among the analysts’ downstream picks.
The analysts believe that the global semiconductor upcycle has yet to peak, pointing to a Gartner forecast which suggests a 19.8% y-o-y gain in 2024, followed by a further 13.8% growth in 2025 and 7.5% in 2026.
