ASM Int'l a Semicon Play to $10

ASM International N.V. (ASMI) is an OEM [original equipment manufacturer] of both front-end and back-end semiconductor manufacturing equipment.

Last June, Applied Materials Inc. (AMAT) offered to buy two of ASM's units for $400 million to $500 million. ASM has so far shunned all offers and the deal appears off for now.

ASM International's back-end business has gained significant momentum in the past two years, while its front-end business has struggled to become profitable. Although back-end order strength indicates that the business will perform strongly, the shares will be constrained until the front-end is sold or becomes profitable.

We rate the shares of ASMI a Buy, and are setting a target price of $10.00.

Read the full analyst report on ASMI

Read the full analyst report on ASMI

Read the full analyst report on AMAT