Amkor Technology price target lowered to $34 from $45 at Needham

Needham analyst Charles Shi lowered the firm’s price target on Amkor Technology (AMKR) to $34 from $45 but keeps a Buy rating on the shares. The company reported solid results for Q3 but cut the Q4 outlook meaningfully, with guidance that implies an 11% sequential decline in total revenue and 23% sequential drop in Communications revenue – far greater than single-digit declines in total revenue and Communications revenue seen in a typical Q4, the analyst tells investors in a research note. The root cause for Amkor’s soft outlook is likely the reduction of high-end smartphone demand and an under-allocation of orders for the 2024 models, the firm added, noting however that Computing revenue strength should continue into Q4.