ACM Analysis (CCMR) was damaged down ~9% throughout market hours after Jefferies analyst Nick Cheng downgraded the semiconductor manufacturing firm as a consequence of valuation issues.

The analyst lowered his ranking on the corporate for underperforming because the maintain, and revised the value goal at $8 from $7.

The scores motion comes after the corporate posted a beating in fourth-quarter earnings. This autumn Non-GAAP EPS $0.19 beat $0.04 and income of $108.54M (+14.1% Y/Y) beat $7.92M.

CEO David Weng had mentioned in the course of the earnings name that the corporate skilled some delay from its provider as a consequence of provide chain constraints, which impacted fourth quarter income.

The corporate reaffirmed that its 2023 income outlook will probably be between $515 million and $585 million, versus a consensus of $528.20 million.

The outlook vary takes into consideration the potential affect of present US-China commerce coverage, provide chain constraints and different elements.

The corporate expects development from a China-based buyer and likewise plans preliminary gross sales within the US and European markets.

“ACMR has diversified its buyer base into the EU and likewise into non-logic/reminiscence gamers, nonetheless, these mature node gamers will probably have decrease common promoting costs and gross margin,” the analyst mentioned in a be aware. .

Wall Avenue analysts give the inventory has a mean purchase ranking, with a mean worth goal of $15.82.

Additionally searching for Alpha contributors give the inventory a purchase ranking, whereas the quantitative ranking system given the inventory a holding ranking.