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On Tuesday, Needham research firm adjusted its price target for Amkor Technology (NASDAQ: NASDAQ:AMKR) shares, reducing it to $22 from the previous $34, while still maintaining a Buy rating on the stock. The reevaluation follows Amkor’s latest financial results, which surpassed expectations and included an upward revision for the quarter. According to InvestingPro data, six analysts have recently revised their earnings estimates downward for the upcoming period, though the stock has shown resilience with a notable 9.5% return over the past week. However, the company has withdrawn its full-year revenue forecast by segment, pointing to second-half uncertainties primarily due to tariffs.
Amkor Technology’s management has expressed that while the first half of 2025 is expected to be strong, this would likely result in a tempered growth rate in the latter half of the year. The company’s exposure to the newly implemented tariffs is limited, as only a minor portion of Amkor’s total production consists of products shipped directly to the United States. Nonetheless, tariffs might still indirectly affect Amkor through their impact on the broader electronics supply chain that serves the U.S. market.
In light of these factors, Needham has opted to adjust its growth projections for Amkor. Analysts are now forecasting a conservative 5% decline in top-line growth for 2025 and no growth for 2026. This cautious stance reflects the potential risks that Amkor faces in the current economic environment.
The revised price target of $22 takes into account the need to mitigate potential risks associated with the uncertain market conditions in the second half of 2025. Despite these challenges, Needham continues to see value in Amkor Technology’s stock, as reflected in the maintained Buy rating. The firm’s analysts believe that even with the revised forecasts, Amkor’s performance merits a positive outlook on the stock’s potential.
In other recent news, Amkor Technology reported its first-quarter 2025 earnings, delivering an earnings per share (EPS) of $0.09, which aligned with analysts’ expectations. The company exceeded revenue forecasts by reporting $1.32 billion against the anticipated $1.28 billion. Despite a 3% year-over-year decline in revenue, Amkor provided guidance for the second quarter, projecting revenue between $1.375 billion and $1.475 billion. The company cited ongoing macroeconomic uncertainties but expressed optimism about its long-term market prospects. Amkor maintains a strong liquidity position with $2.2 billion in total liquidity. Analysts from firms such as Needham and UBS engaged with Amkor’s executives during the earnings call, discussing the potential impacts of tariffs and trade regulations on future operations. The company is actively expanding its technology offerings, including advanced packaging and test solutions, and plans to begin construction of a new facility in Arizona in the second half of 2025.
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