The Panic-Proof Portfolio (Stockchase Research)Axcellis Technologies, Inc.ACLSTOP PICKDec 28, 2023
Stockchase Research Editor: Michael O'Reilly
ACLS makes equipment in the fabrication of semiconductor chips in the US. Revenues are up 25% on the year, continuing a strong trend over the past three years. EPS grew by 41%. Its equipment is particularly in demand by EV manufacturers, where their methods are more durable. Their order backlog is $1.2 billion. It trades at 18x earnings -- almost 40% discount to Nasdaq-100 average -- and it supports a ROE 32%. We recommend a stop-loss at $102, looking to achieve $175 -- upside potential of 32%. Yield 0%
ACLS makes equipment in the fabrication of semiconductor chips in the US. Revenues are up 25% on the year, continuing a strong trend over the past three years. EPS grew by 41%. Its equipment is particularly in demand by EV manufacturers, where their methods are more durable. Their order backlog is $1.2 billion. It trades at 18x earnings -- almost 40% discount to Nasdaq-100 average -- and it supports a ROE 32%. We recommend a stop-loss at $102, looking to achieve $175 -- upside potential of 32%. Yield 0%
(Analysts’ price target is $174.80)