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Bank of America starts Axcelis at Buy; 'We expect ACLS to continue gaining implant share'

Published 16/09/2023, 02:04 am
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ACLS
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Bank of America initiated coverage on Axcelis Technologies (ACLS) with a Buy rating and a 12-month price target of $225.00 on the stock. Analyst Duksan Jang believes the street is “underappreciating” ACLS’s exposure to fast growing markets, share gains, an superior growth prospects over peers.

As the second-largest implant provider, Axcelis boasts a 28% market share. An achievement primarily attributed to ACLS's unwavering focus on this segment, with the entirety of its tool sales dedicated to it. Additionally, ACLS has a diverse and extensive portfolio that further bolsters its market presence.

Axcelis is the sole vendor offering a comprehensive range of implant products, setting it apart from its competitors, positioning ACLS as one of the most rapidly expanding semiconductor capital equipment vendors in the United States.

Jang wrote in a note, “We expect ACLS to continue gaining implant share, reaching 35% by CY25E, with every point of share gain representing ~$25mn in sales or $0.30 in EPS.”

”Axcelis is well positioned to benefit from the growing secular demand of semiconductor chips,” added Jang.

“Axcelis's focus in ion implant and wide breadth of portfolio should enable it to sustainably outgrow peers and the broader market over the next three years.”

Shares of ACLS are down 7.08% in mid-day trading Friday.

By Michael Elkins | Michael.Elkins@streetinsider.com

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