ASM International "hold," target price reduced

11/02/07 - ING Financial Markets

LONDON, November 2 (newratings.com) - Analysts at ING Financial Markets maintain their "hold" rating on ASM International NV (AVS), while reducing their estimates for the company. The target price has been reduced from €21.50 to €19.00.

In a research note published this morning, the analysts mention that the company has posted its 3Q07 results ahead of expectations. ASM International’s backlog deteriorated by 23% and its bookings declined sequentially by 13% during the three-month period, the analysts say. The company has issued a disappointing guidance for 4Q07, pointing towards a sequential decline in Front End sales. The EPS estimates for 2007-2009 have been reduced by an average of 4%.