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UOB Kay Hian downgrades AEM Holdings to 'hold' despite record 1HFY2022 revenue

Felicia Tan
Felicia Tan8/16/2022 11:49 AM GMT+08  • 3 min read
UOB Kay Hian downgrades AEM Holdings to 'hold' despite record 1HFY2022 revenue
During the 1HFY2022 ended June, AEM reported earnings of $83 million, up 180% y-o-y. Photo: Bloomberg
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UOB Kay Hian analyst John Cheong has downgraded AEM Holdings to “hold” from “buy” with a lower target price of $5.02, 10% down from his previous target price of $5.60.

“We roll over our valuation base year to FY2023 and peg it to a lower P/E multiple of 10.5x, or +0.5 standard deviations (s.d.) of its historical mean (down from 15.6x, or +2 s.d. to its historical five-year mean),” the analyst writes in his Aug 16 report.

“The reduction in our P/E multiple peg is to capture the potential weaker sentiment in the semiconductor industry as more global players, including Intel, are cautioning for a weaker near-term outlook,” he adds.

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