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On Friday, Jefferies analyst Nick Cheng revised the price target for ACM Research, Inc. (NASDAQ:ACMR) shares, reducing it to $30.00 from the previous $34.00. Despite this adjustment, the firm maintained its Buy rating on the stock. Currently trading at $22.43 with a P/E ratio of 12.76, InvestingPro analysis suggests the stock is undervalued. Cheng’s review followed ACM Research’s first-quarter earnings, which slightly exceeded expectations, and earnings before interest and taxes (EBIT) and net profit that surpassed Jefferies’ forecasts by 44%. The company demonstrated further operational expenditure control during the quarter.
ACM Research’s management has kept its full-year 2025 revenue guidance steady at $850-950 million, building on its impressive 26.21% revenue growth over the last twelve months. The analyst noted that the company’s Track and Plasma Enhanced Chemical Vapor Deposition (PECVD) products are expected to begin contributing to revenue towards the end of 2025, with a more significant impact anticipated in 2026. InvestingPro data reveals 8 additional key insights about ACMR’s growth potential and financial health, available exclusively to subscribers.
Additionally, Cheng highlighted the strategic move by ACM Research to construct a new facility in Oregon. This development is aimed at catering to U.S. clients, which will not only reduce tariff uncertainty but also provide better service to local customers. Management expects this facility to start shipping tools in the first quarter of 2026.
The company’s focus on operational efficiency and strategic expansion to serve the U.S. market more effectively were key points in maintaining the Buy rating. Cheng’s commentary reflects a positive outlook on ACM Research’s future performance and its ability to meet its revenue guidance, despite the reduction in the price target.
In other recent news, ACM Research reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved earnings per share of $0.46, significantly above the forecasted $0.3186, and generated revenue of $172.3 million, exceeding the expected $170.25 million. This performance represents a 13.2% increase in revenue year-over-year, driven by robust product sales. Despite a slight decline in net income from $34.6 million in Q1 2024 to $31.3 million, ACM Research maintained a healthy cash position with $498.4 million in cash and equivalents. The company’s gross margin improved to 48.2%, surpassing its target range. ACM Research continues to focus on expanding its product lines and increasing its market share globally, projecting revenue between $850 million and $950 million for the full year 2025. Analysts from Needham and Company noted the company’s strategic initiatives to mitigate potential tariff impacts and maintain competitive advantages in the semiconductor market. Additionally, ACM Research’s CEO highlighted the company’s commitment to innovation and intellectual property, which he believes will support global expansion efforts.
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