On Monday, CLSA initiated coverage on Global Unichip Corp (3443:TT) stock, a semiconductor company, with an Outperform rating and a price target of NT$1,800.00. The new rating reflects the firm's positive outlook on the company's strategic transformation and potential for significant sales growth.
The analyst from CLSA highlighted that Global Unichip's shift in strategy is beginning to bear fruit, particularly in the field of artificial intelligence (AI) application-specific integrated circuits (ASICs). The firm is expected to benefit from the increased demand for AI ASICs by cloud service providers (CSPs) and the ongoing transition to more advanced semiconductor nodes.
Global Unichip's decision to pivot from startups to CSPs was noted as a positive move, especially given its successful track record in securing major projects. This success is attributed to its strong partnership with Taiwan Semiconductor Manufacturing Company (TSMC), which is seen as a key factor in the company's ability to win key contracts.
CLSA forecasts a compound annual growth rate (CAGR) of 35% in Global Unichip's earnings for the period from 2024 to 2026. The price target of NT$1,800 is based on a 44x multiple of the company's projected earnings per share (EPS) from the third quarter of 2025 to the second quarter of 2026.
The Outperform rating suggests that CLSA believes Global Unichip's stock will perform better than the average return of the stocks the firm covers, indicating a positive outlook for investors considering this semiconductor industry player.
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