Analysts from CLSA have initiated coverage of CXMT with an outperform rating, projecting its global market share by bit shipment to rise from 9% last year to 14% next year. They attribute this growth to CXMT's status as China's leading DRAM integrated device manufacturer and its ability to leverage technology advancements and capacity expansion.
CLSA has set a price target of 84.70 yuan ($12.64), indicating a potential increase of over 60% from the current share price. Bernstein analysts also initiated coverage with an outperform rating and a price target of 70 yuan, highlighting the risk posed by U.S. restrictions on production tools but noting CXMT's significant progress.
They estimate that CXMT could capture an additional 10% of global market demand from foreign companies using its DRAM chips in various consumer electronics. Despite geopolitical concerns, Bernstein suggests that Chinese OEMs will continue to use CXMT's products in goods sold internationally.
Investor interest is heightened as CXMT prepares to release its earnings on October 31, with BNP Paribas forecasting a 22% revenue increase for the September quarter. However, BNP maintains a neutral rating with a lower price target of 48.70 yuan, suggesting that much of the positive outlook may already be reflected in the stock price