ACMR - ACM Research down after Jefferies analyst downgrades rating on valuation concerns

ACM Research ( ACMR ) was down ~9% during market hours after Jefferies analyst Nick Cheng downgraded the semiconductors manufacturing company on valuation concerns.

The analyst lowered its rating on the company to underperform from hold, and revised the price target to $8 from $7.

The ratings action comes after the company posted a beat in Q4 earnings. Q4 non-GAAP EPS of $0.19 beats by $0.04 and revenue of $108.54M (+14.1% Y/Y) beats by $7.92M.

CEO David Weng had said during the earnings call that the company experienced some delay from their supplier due to supply chain constraints, which impacted Q4 revenue.

The company reaffirmed its 2023 revenue outlook to be in the range of $515M to $585M, vs. $528.20M consensus.

The range of the outlook considers the potential impact from current U.S.-China trade policy, supply chain constraints and other factors.

The company expects growth from a China-based customer, and also anticipate initial sales to the U.S. and European markets.

"ACMR diversified its customer base to EU and also non-logic/memory players, however, these mature node players will likely have lower" average selling prices and gross margin, the analyst said in a note.

Wall Street analysts give the stock a Buy rating on average, with an average price target of $15.82.

Seeking Alpha's contributors also give the stock a Buy rating, while the Quant Rating system gives the stock a Hold rating.

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