ACM Research downgraded at Jefferies on potential capex cuts at China foundries

As previously reported, Jefferies analyst Nick Cheng downgraded ACM Research to Underperform from Hold with a price target of $8, up from $7, citing the view that potential capex cuts at Chinese logic foundries presents downside risk and a belief that Chinese players’ retreat to greater than 45nm could reduce ACM’s gross margin and average selling prices. While ACM is making progress diversifying its customer base to non-Chinese/logic/memory customers, this is still not as profitable as Chinese memory customers, the firm said.