Tuesday, DA Davidson announced a revised price target on shares of Amkor Technology (NASDAQ:AMKR), lowering it to $36.00 from the previous $40.00, while still retaining a Buy rating on the stock.
The adjustment follows Amkor's recent earnings report, which, despite showing a solid quarter driven by iPhone sales, projected a downturn in the fourth quarter that exceeds typical seasonal patterns.
The less optimistic forecast for the upcoming quarter is attributed to challenges in the communications sector, particularly a lower than anticipated production of premium tier phones, including iPhones. This downturn is somewhat mitigated by a robust consumer wearable build.
DA Davidson remains positive on Amkor's long-term prospects, predicting a robust recovery in its communications business, spurred by an iPhone refresh cycle anticipated for 2025 that is expected to be fueled by advancements in artificial intelligence (AI).
The firm's outlook for Amkor extends beyond the immediate future, envisioning a period of growth for the company spanning the next 2-3 years. This optimism is based on a combination of factors, including a cyclical recovery across various chip end markets and the onset of new production capabilities in Vietnam.
DA Davidson anticipates this growth phase to commence in the following year and gain momentum as it progresses into 2026, suggesting a positive trajectory for Amkor's revenues, earnings, and share performance.
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