Manz Asia’s new collaboration with SUSS MicroTec (XTRA:SMHN) on next generation inkjet solutions for semiconductor manufacturing puts process efficiency at center stage and gives investors fresh context for judging the stock.
SUSS MicroTec’s latest inkjet partnership lands after a sharp pullback, with the 30 day share price return down 21.09% and the 90 day move down 34.96%. Even though the year to date share price return is 63.57% and the 1 year total shareholder return is 140.56%, these figures together indicate stronger performance over the longer term alongside recent profit taking and shifting risk appetite around the stock.
Scan beyond SUSS MicroTec and this inkjet partnership by lining up other advanced manufacturing plays through our hand picked 38 robotics and automation stocks.
SUSS MicroTec has surged over the past year, then given back a chunk in recent weeks, which leaves one blunt question hanging: Is most of the upside already in the rearview mirror, or is the rerating only part way through?
Most Popular Narrative: 36% Undervalued
The most followed valuation narrative pegs SUSS MicroTec’s fair value at €103.94 using a 9.14% discount rate, compared with the latest close at €66.80. This frames the recent pullback as a wide gap between price and that central estimate.
The analysts have a consensus price target of €103.94 for SUSS MicroTec based on their expectations of its future earnings growth, profit margins and other risk factors.
Given the current share price of €96.7, the analyst price target of €103.94 is 7.0% higher. The relatively low difference between the current share price and the analyst consensus price target indicates that they believe on average, the company is fairly priced.
See why 22 investors see SUSS MicroTec as 36% undervalued.
Result: Fair Value of €103.94 (UNDERVALUED)
Still, shrinking order intake and weaker demand from China could pressure SUSS MicroTec’s backlog and margins. This would quickly test that undervaluation story.
Find out about the key risks to this SUSS MicroTec narrative.
Next Steps
Mixed messages in the SUSS MicroTec story can be useful. Move quickly, review both sides of the data, and then anchor your own judgment with the 3 key rewards and 2 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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