Gold rally may be losing steam but no major correction seen: DB
Investing.com - JPMorgan has upgraded Ibiden Co Ltd. (4062:JP) (OTC:IBIDF) from Neutral to Overweight while significantly raising its price target to JPY12,900.00 from JPY6,500.00.
The upgrade reflects JPMorgan’s higher earnings forecasts for Ibiden and a shift in the base year for calculating its price target from FY2026 to FY2029, according to the research note issued Friday.
JPMorgan cited Ibiden’s technological advantages in ABF substrates for AI-use GPUs and ASICs as key factors in the rating change, noting the firm now calculates its price target based on earnings forecasts after full operation begins at Ibiden’s new Ono and Gama plants.
The investment bank expects the market to price in Ibiden’s future capacity expansion plans, similar to what occurred in 2020, and believes the current growth cycle differs qualitatively from previous ones due to medium/long-term growth in ABF substrates for AI GPUs.
JPMorgan also anticipates profits from CPU-use ABF substrates to bottom out while Ibiden’s competitive advantages in ABF substrates for AI GPUs strengthen, potentially pushing the stock’s valuation beyond peaks reached in 2020 and 2023.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.