PLAB - Photronics jumps 6% as Stifel upgrades rating PT to $21

Stifel upgrades Photronics (PLAB +4.8%) to a Buy from Hold rating, and increasing our target price to $21. Elaborating on the new price target, $21 is based on 10x CY23 EPS of $1.93 plus ~$2 in net cash per share exiting CY23. Currently the stock trades at $15.20, and has a market cap of $895.7M. "Our FY22 (Oct) and CY22 estimates remain unchanged, and we are introducing FY23 and CY23 forecasts. For FY23, our new estimates call for $855 million in revenue (+8% y-o-y) and pro-forma EPS of $1.86, including options. For CY23, our new estimates call for $867 million in revenue (+7% y-o-y) and pro-forma EPS of $1.93, including options. For CY23, our business breakdown includes 1) trailing-edge IC to grow +10% y-o-y, 2) advanced IC to grow +4% y-o-y, 3) advanced display to grow +10% y-o-y, and 4) mainstream display to decline -17% y-o-y." vs. consensus for FY23

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Photronics jumps 6% as Stifel upgrades rating, PT to $21