B.Riley FBR Believes Kulicke & Soffa (NASDAQ: KLIC) Won’t Stop Here

By Ryan Adsit

In a report released today, Craig Ellis from B.Riley FBR reiterated a Buy rating on Kulicke & Soffa (NASDAQ: KLIC), with a price target of $31. The company’s shares closed on Friday at $23.61, close to its 52-week high of $24.56.

Ellis commented:

“Tuesday pre-market, back-end packaging specialist KLIC reports F4Q17 results. We project an in- line to slightly better F4Q print and a F1Q18 guide modestly above the Street in what is typically a seasonally weak period. The backdrop is 80.0% of on-cycle back-end laterals bucked adverse H/H seasonality, lending credence to more diversified and above-seasonal end demand that we believe has roots in an above-seasonal Analog, auto, and IoT environment where numerous secular tailwinds remain in early innings. Recall that KLIC end market exposure includes Auto, IoT, Mobile, and 3D NAND. Longer term, we believe Services can grow significantly off a low base as the huge install base is tapped for abundant upgrade potential. Elsewhere, a range of constructive inputs such as on-cycle reporting, 4QTD reporting call-backs, and broader Semi and Semi Cap industry analysis suggest end demand remains robust.”

According to TipRanks.com, Ellis is a top 25 analyst with an average return of 30.7% and a 81.5% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Axcelis Technologies, and Rudolph Technologies.

Kulicke & Soffa has an analyst consensus of Moderate Buy, with a price target consensus of $31.

The company has a one-year high of $24.56 and a one-year low of $13.98. Currently, Kulicke & Soffa has an average volume of 380.6K.

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Kulicke & Soffa Industries, Inc. engages in the design, manufacture, and sale of tools used to assemble semiconductor devices. It operates through the Equipment, and Expandable Tools. The Equipment segment consists of ball bonders, wedge bonders, advanced packaging, and electronic assembly solutions.