US LNG exports surge but will buyers in China turn up?
Investing.com - UBS initiated coverage on Lotes Co Ltd (TPE:3533) with a Buy rating and a price target of NT$2,000.00 on Wednesday.
The Taiwan-based connector supplier was highlighted for its strong research and development capabilities, with UBS noting the company holds over 4,000 patents and ISO17025 test lab certification.
UBS expects Lotes to see accelerating growth in 2025 and 2026, driven primarily by increasing CPU server socket demand due to specification upgrades from Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD).
The firm also identified new market opportunities for Lotes in AI interconnect technology and liquid cooling components, specifically mentioning UQD components as a growth driver.
UBS pointed to Lotes’ valuation of 13 times 2026 estimated price-to-earnings as "undemanding" compared to its 14 times average forward PE, suggesting the market has underappreciated the company’s AI exposure and CPU server socket sales growth potential.
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