ASM International initiated with "underweight" - update

12/11/07 - J.P. Morgan Securities

LONDON, December 11 (newratings.com) - Analysts at JP Morgan initiate coverage of ASM International NV (AVS) with an "underweight" rating. The target price is set to €14.50.

In a research note published this morning, the analysts mention that the lack of market share and scale hinders the company’s profitability. ASM International is unlikely to gain significant market share without a major technology shift, the analysts say. The company is expected to face order weakness in its assembly equipment business till 2H08, JP Morgan adds.