CLSA upgrades Lasertec stock rating, raises price target to JPY24,900

CLSA upgraded Lasertec Corp (TYO:6920) to High-Conviction Outperform from Outperform, raising the price target to ¥24,900 from ¥22,400 based on expectations of order recovery starting in 2026 and above-consensus operating profit forecasts for fiscal years 2025-2027. The analysts anticipate increased demand for Lasertec's ACTIS system due to the expansion of wafer fabrication, particularly in the U.S., and its critical role in inspecting pellicle-attached photomasks for sub-2nm processes.

Analysis

CLSA's upgrade of Lasertec Corp. to High-Conviction Outperform, accompanied by a price target increase to ¥24,900 from ¥22,400, underscores a strongly positive outlook driven by an anticipated order recovery beginning in calendar year 2026. This recovery is expected to become more evident with the company's full-year earnings report scheduled for August. The demand for Lasertec's ACTIS system is projected to grow significantly, fueled by the expansion of wafer fabrication locations, notably in the United States, and the semiconductor industry's shift towards sub-2nm process technologies. CLSA's operating profit forecasts for fiscal years 2025 through 2027 surpass current consensus estimates, highlighting the perceived critical role of Lasertec's systems in inspecting pellicle-attached photomasks for increasingly fine inspection requirements and its strong strategic positioning in the semiconductor inspection market.

Key Decisions for Investors

• Investors should consider the CLSA upgrade and increased price target as a strong positive signal for Lasertec, reflecting expectations of a significant order recovery from 2026.
• Closely monitor Lasertec's upcoming August full-year earnings for early indicators of this recovery and validation of above-consensus profit forecasts for FY2025-2027, as well as updates on ACTIS system demand linked to U.S. wafer fab expansion and sub-2nm technology adoption.
• Evaluate exposure to Lasertec, factoring in the medium-term growth trajectory supported by its strategic importance in advanced semiconductor inspection, while noting the 2026 timeline for the projected full order recovery.