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Benchmark has reiterated a Buy rating on ACM Research, Inc. (NASDAQ:ACMR), currently trading at $26.41 with a market cap of $1.7 billion, with a price target of $38.00. The stock, which InvestingPro analysis suggests is currently undervalued, has seen impressive YTD returns of 68%. The meetings covered ACM’s serviceable addressable market (SAM), geographic opportunities, ACM Shanghai operations, shipment outlook, and a long-term business model.
ACM Research has identified an $18 billion SAM across multiple product categories. This includes $5.9 billion in cleaning, $1.2 billion in advanced packaging (AP), $1.0 billion in plating, $2.3 billion in furnace tools, $2.8 billion in track tools, and $4.7 billion in PECVD tools. The company’s strong market positioning is reflected in its robust financial health, earning a "GREAT" rating from InvestingPro, with impressive revenue growth of 26% in the last twelve months.
The company introduced Track and PECVD tools in late 2022, with evaluations currently underway in China. Qualifications for these new product lines are possible within 2025, expanding ACM’s market reach beyond its traditional strengths.
For 2024, cleaning tools dominated ACM’s revenue mix, representing 74% of total sales. Electrochemical plating (ECP), furnace and other tools accounted for 19% of sales, while advanced packaging tool sales comprised the remaining 7%.
The analyst discussions also included a long-term model projecting $3 billion in sales for ACM Research, though specific timeframes for achieving this target were not disclosed in the report. With a favorable PEG ratio of 0.77 indicating attractive valuation relative to growth, the company appears well-positioned for expansion. For deeper insights into ACM Research’s growth potential and comprehensive analysis, access the full Pro Research Report available on InvestingPro, which offers 10+ additional exclusive ProTips and detailed financial metrics.
In other recent news, ACM Research reported its Q1 2025 financial results, showcasing a strong performance with earnings per share (EPS) of $0.46, surpassing analysts’ expectations of $0.3186. The company achieved revenue of $172.3 million, exceeding the forecast of $170.25 million, and marking a 13.2% year-over-year growth. Jefferies analyst Nick Cheng, while maintaining a Buy rating, adjusted the price target for ACM Research to $30 from $34, following these earnings results. The analyst noted that ACM Research’s EBIT and net profit exceeded Jefferies’ forecasts by 44%. Additionally, ACM Research is maintaining its full-year 2025 revenue guidance between $850 million and $950 million. Strategic expansion includes the construction of a new facility in Oregon aimed at serving U.S. clients, expected to start shipping in early 2026. The company continues to focus on operational efficiency and expanding its product lines, with plans to leverage its Track and Plasma Enhanced Chemical Vapor Deposition (PECVD) products for future revenue growth.
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