It’s been a brutal stretch for companies exposed to 3D sensing, with ams AG (OTCPK:AMSSY) (AMS.S) and IQE (OTC:IQEPY) having a particularly rough year. Recent weakness tied to Apple (AAPL) has hit the sector hard (including Lumentum (LITE)
), and weak volumes, underutilized capacity, and price pressure have
all combined to savage ams’s near-term earning prospects and share
price.
Sell-side analysts have slashed their price
targets for ams by two thirds over the past four months, with one
analyst going from a target of CHF 190 to CHF 23.60, and it remains to
be seen just how quickly Android adoption of 3D sensing will develop and
whether OEMs will favor the structured light technology where ams is
strongest. Although the shares do look undervalued even after a sharp
revision to expectations, this isn’t a hill I’m particularly eager to
die on and investors need to weigh the potential of 3D sensing adoption
against the risk that the adoption curve will be long enough that ams’s
advantages will be whittled away by lower-priced Asian suppliers.
Read more here:
ams AG Decimated On Further Apple Shortfalls
No comments:
Post a Comment