2024-02-16 00:26:06 ET
Summary
- Axcelis Technologies stock has dropped over 30% since June 2023, but we believe one can be more optimistic about the share now.
- Semiconductor-related CAPEX spending will pick up over the next two years.
- ACLS is still on track to hit its $1.3bn sales target for FY25 and has the potential for increased gross margins and FCF generation.
- The stock appears to have reached a congestion zone, whilst it could also benefit from rotational interest vis-à-vis other semiconductor offerings.
- Investors should also be mindful of the heightened Chinese market exposure, a suboptimal valuation picture, and reduced interest from the institutional cohort.
Introduction
Back in June 2023, we wrote a piece on Axcelis Technologies ( ACLS ), a specialist in ion implantation technology, when it was flourishing at around lifetime highs. Whilst we appreciated some facets of the business (and still do), we were less certain of its ability to generate ample alpha at those lofty levels, and hence went with a HOLD rating back then....
Read the full article on Seeking Alpha
For further details see:
Axcelis: Becoming More Constructive, But Some Risks Remain