Shares of Taiwan’s United Microelectronics (NYSE:UMC) are in focus today after the semiconductor wafer foundry reported a nearly 19% year-over-year revenue decline in December.
Indeed, revenue declined to NT$16.98 billion from NT$20.95 billion in the year-ago period. The company witnessed a 20.15% drop in its top line from January 2023 to December 2023.
Is UMC a Good Stock to Buy?
Despite falling revenues, UMC’s share price has gained by nearly 20.4% over the past year. Further, Goldman Sachs’ Bruce Lu, the lone analyst covering UMC, has reiterated a Buy rating on the stock while raising the price target to $10.20 from $8.40. This points to a further 25.5% potential upside in UMC shares.
At the same time, this month’s general elections in Taiwan could add a bout of uncertainty in the stock’s trajectory. Elections in the country are scheduled to be held on January 13, a key event to keep an eye on for UMC investors.
Additionally, UMC is scheduled to report its results for the fourth quarter on January 24. Analysts expect the company to post an EPS of $0.15 on revenue of $1.70 billion for the quarter. In the comparable year-ago period, UMC’s EPS of $0.25 had lagged expectations by $0.01.
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