HSBC upgrades EO Technics stock to Buy on memory sector growth

Published 16/07/2025, 08:14
HSBC upgrades EO Technics stock to Buy on memory sector growth

Investing.com - HSBC upgraded EO Technics Co Ltd (KS:039030) from Hold to Buy on Tuesday, more than doubling its price target to KRW274,000 from KRW135,000.

The upgrade comes as HSBC sees a "compelling growth trajectory" for the company driven by structural changes in memory manufacturers’ capital expenditure allocation, with 7% year-over-year capacity growth expected by the end of 2026.

HSBC believes the industry is in the early stages of adopting laser cutting technology in DRAM from HBM4, positioning EO Technics to benefit from accelerating multi-node DRAM and HBM adoption.

The firm expects HBM adoption of femtosecond laser-based grooving and full-cut applications to support 100% year-over-year sales growth in laser cutting to KRW41 billion in 2025, according to a July 9 ET News report.

HSBC also forecasts 80% year-over-year growth in laser annealing sales to KRW55 billion in 2025, while laser marker sales should grow 30% to KRW146 billion, driven by AI-related global wafer demand recovery.

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