Analyst Note| Abhinav Davuluri, CFA |
ASM International reported first-quarter results at the high-end of management’s guidance, as the firm benefited from strong demand for its atomic layer deposition, or ALD, equipment from logic and foundry customers. These tools are critical in advanced process technologies that feature multiple patterning. Similar to its peers, management expects the wafer fab equipment, or WFE, market to grow in the high teens to low20s for 2021. We believe full-year WFE growth will be 20%, thanks to a combination of robust foundry spending and improved memory investments. After incorporating a stronger growth outlook for both ASM and the broader WFE market, we are raising our fair value estimate to EUR 185 per share from EUR 145 for no-moat ASM.