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AEM surges for second day running; DBS raises target price to $3.30; Maybank upgrades call from 'sell' to 'buy'

The Edge Singapore
The Edge Singapore  • 2 min read
AEM surges for second day running; DBS raises target price to $3.30; Maybank upgrades call from 'sell' to 'buy'
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AEM Holdings is surging for a second day with bullish upgrades from analysts following signs that it is winning meaningful new revenue from a new customer and no longer as reliant on its long time key customer.

Besides reporting better than expected FY2025 earnings, AEM is guiding for higher FY2026 revenue of between $460 to $510 million.

After gaining a fifth on Feb 26, AEM shares as at 9.46 am this morning is up by another by another 14.17% to trade at $2.82.

Jarick Seet of Maybank Securities upgraded his call from "sell" to "buy", along with a higher target price of $2.84, from $1.49 earlier.

"We believe the ramp-up is finally here and expect substantial margin expansion going forward," states Seet in his Feb 27 note.

Amanda Tan of DBS Group Research, who has been more bullish than most other analysts, prior to the results announcement, has turned even more so.

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From an earlier target price of $2.10, she now figures that this stock is worth $3.30.

She is now applying 30x FY2026 earnings multiple, up from 25x, to reflect her view that the stock is undergoing both an earnings and multiple rerating.

Tan is suggesting there's more room to go.

See also: Analysts ‘neutral’ on Sembcorp after FY2025 result announcement

"We note that this remains at a discount to the 50 times 2026 earnings at which other test peers are currently trading," she adds.

Similarly, William Tng of CGS International has his upgraded call from "hold" to "add" along with a higher target price of $3.14, from $1.85, citing revenue guidance and more positive prospects.

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