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Investing.com - UBS has downgraded Comet Holding AG (SWX:COTN) from Buy to Neutral, while significantly reducing its price target to CHF194.00 from CHF272.00.
The Swiss investment bank cited materially lower sales growth expectations for the semiconductor-focused segment of Comet’s business as the primary reason for the downgrade.
UBS analyst Sebastian Vogel noted that while demand has improved, "the extent and duration fell short of our previous expectations," attributing this shortfall to consumer spending uncertainty and reluctance among semiconductor equipment customers to commit to additional capital expenditures.
The bank expects the slower growth to limit Comet’s operating leverage and business mix-driven margin improvements that were previously anticipated.
UBS also indicated that using a reverse discounted cash flow analysis suggests Comet’s current share price already reflects much of the lowered estimates, limiting potential upside.
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