Replies to post #44111 on Savvy Trades and Investments

[researcher59]

ICHR target raised to $42 at Needham -

per briefing -

ICHOR Corporation target raised to $42 at Needham (32.75 ) : Needham raises their ICHR tgt to $42 from $36, reiterates Buy. Firm notes that head of their 20th annual Needham Growth Conference, ICHR positively preannounced 4Q17 and, more importantly, provided a very robust 1Q18 outlook, supported by strong demand in WFE coupled with new program wins and full ramp of its recent acquisitions. They believe the step change in ICHR's revenue base coupled with the new target model with increased margin profiles should support a better valuation for the stock, given that it is still trading at a P/E of just ~8x based on their updated 2018 NG EPS with Stock Comp. Given the solid momentum and a validated inorganic growth strategy, they are buyers of the stock despite the sizable increase following the pre-announcement.

[researcher59]

ICHR +1.63 to 34.02, looks good, but heavily dependent on industry semiconductor equipment giants AMAT and LRCX which accounted for over 95% of sales in 2016. So there's risk in that dependency and the stock would tank if they lost either customer to competition. Also it's a very cyclical business tied to the broader semiconductor industry.

Too bad we missed the Q4 preannouncement last week when the stock could have been bought in the $27's !