AEM shares, as 10.19 am, jumped by more than 11% to trade at $9.27. As recent as February, the counter was trading at just above $2.
On May 13, the company reported earnings of $14.35 million for its 1QFY2026, a 329.4% y-o-y jump, on the back of a 35% increase in revenue to $116.9 million, as it fulfilled more orders from its key customers.
In anticipation of a better year, AEM has raised its FY2026 revenue guidance by around a fifth to $550 million to $600 million.
AEM is eyeing a US$3 billion serviceable available market across its various customer categories and this amount is seen to swell to US$4.5 billion in 2028.
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"New customer traction continues to gain steam with revenue from the AI fabless customer to grow significantly in FY2026 while orders from the evaluation final test handler for the memory customer is also on track with initial revenues expected in late FY2026, ahead of a production ramp in FY2027," says Tan.
"We believe that AEM is near an inflection point and foresee its customer diversification strategy yielding more significant returns in the years ahead," she adds.
While Tan has kept her valuation multiple at 42x FY2027, she has raised her earnings forecast for FY2026 by 25% and 33% for FY2027, leading to the higher target price.
