UMC initiated with a Hold at Loop Capital

Loop Capital analyst Charles Park initiated coverage of UMC with a Hold rating and NT$50 price target. The analyst cites UMC management expectations that the market environment would remain challenging in the first half of 2023 before recovering in the second half, adding that inventories remain high, though the situation should improve as customers work down their inventories. Loop Capital further notes that while UMC believes that average selling prices would remain firm in 2023, the firm sees this as a risk should the industry downturn last longer.