ACM Research Inc (NASDAQ:ACMR) was lifted to Buy from Hold at Jefferies, with its price target lifted to $23.40 from $9 per share in a note to clients Monday.
The brokerage firm's analysts said the rating change was based on less strict DUV rules lifting China's fab CapEx.
"The Dutch gov announced the SPE export rules last Friday, allowing the export of ASML's oldest Arf immersion machine, NXT1980Di," they explained.
"Since it's expected that the machine can produce 16/14nm and even 7/5nm, we believe China will buy as much equipment as possible during this golden window," the analysts added.
The firm also raised its 2023E~26E revenue forecast for ACMR by 23% and is now 8% above consensus.