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3711: Penang Facility Acquisition Will Support Steady Operations With Balanced Outlook

Analysts Lift ASE Technology Price Target Amid Acquisition News and Stronger Growth Forecasts

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3711
AnalystConsensusTarget
Not Invested
Published 07 Nov 2024

Update shared on 05 Dec 2025

Fair value Increased 1.43%
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1Y
53.6%
7D
5.4%

Analysts have modestly raised their price target on ASE Technology Holding to about $249.69, up roughly $3.53. This change reflects slightly lower perceived risk, steady growth expectations, and a marginally higher assumed future earnings multiple.

What's in the News

  • ASE Technology Holding and Analog Devices Inc. signed a binding Memorandum of Understanding for ASE to acquire 100% of Analog Devices Sdn. Bhd. and its Penang, Malaysia manufacturing facility, expanding ASE's global IC packaging and testing footprint (Key Developments).
  • The parties intend to enter definitive agreements in the fourth calendar quarter of 2025, with the transaction expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals (Key Developments).
  • Following completion, ASE will assume and further develop the Penang operations to support Analog Devices and other customers, with ADI planning to co invest with ASE in upskilling the facility's workforce and capabilities (Key Developments).

Valuation Changes

  • The fair value estimate has risen slightly from NT$246.16 to NT$249.69, reflecting a modest upward revision in intrinsic value.
  • The discount rate has fallen slightly from 10.59% to 10.50%, indicating a marginal reduction in the assumed risk profile.
  • Revenue growth has been maintained at approximately 13.53%, signaling unchanged medium term growth expectations.
  • The net profit margin has been kept essentially unchanged at about 10.88%, suggesting stable profitability assumptions.
  • The future P/E has edged up from 14.71x to 14.88x, implying a slightly higher valuation multiple on projected earnings.

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