DA Davidson reiterates Buy rating on Amkor Technology stock

Published 29/07/2025, 17:08
DA Davidson reiterates Buy rating on Amkor Technology stock

Investing.com - DA Davidson has reiterated its Buy rating and $30.00 price target on Amkor Technology (NASDAQ:AMKR), maintaining confidence in the semiconductor packaging company despite mixed third-quarter results. According to InvestingPro data, Amkor, currently trading at $24.99, has shown strong returns over the past three months despite market volatility.

The firm noted that while Amkor’s revenue exceeded expectations, margins were softer than anticipated, resulting in an earnings miss for the quarter.

DA Davidson attributed the margin pressure to a faster-than-expected capacity ramp of high-density fan-out technology, which is required for high-performance computing (HPC) applications.

Despite the near-term margin challenges, the research firm believes Amkor is "extremely well positioned to outgrow the market" and achieve meaningful operating leverage in coming quarters and years.

The $30 price target represents approximately 16 times the company’s projected 2026 earnings per share plus net cash, according to DA Davidson’s analysis.

In other recent news, Amkor Technology reported earnings for the second quarter of 2025 that exceeded expectations. The company’s earnings per share (EPS) were $0.22, surpassing the forecast of $0.16, while revenue reached $1.51 billion, compared to the expected $1.42 billion. This represented a revenue surprise of 6.34%. Despite a one-time benefit contributing to the earnings beat, KeyBanc maintained a Sector Weight rating on the company. Meanwhile, Needham raised its price target for Amkor Technology to $28.00 from $22.00, maintaining a Buy rating due to a strong earnings report. Needham highlighted the company’s robust communications revenue, which is anticipated to grow significantly, driven by high-end smartphone demand. The firm’s analysis also noted a minor concern regarding gross margin guidance. These recent developments indicate a positive outlook for Amkor Technology, according to analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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