Monday, Deutsche Bank (ETR:DBKGn) initiated coverage on Comet Holding AG (COTN:SW) stock with a Buy rating and a CHF450.00 price target. The firm highlighted Comet's strong position in the radio frequency (RF) power supply market, which is essential for semiconductor production processes such as etching wafers and depositing thin films.
Comet, though smaller than competitors MKS and AEI, holds a significant 40% market share in impedance matches. The company is planning to double its capacity with a facility expansion in Malaysia.
This move is part of Comet's strategy to increase its addressable market by venturing into the larger RF generator segment over the next four years.
The analyst noted Comet's recent successes, including the validation of its innovative RF subsystem, "Synertia," tailored for advanced semiconductor technologies like gate-all-around structures.
Comet has reportedly secured wins with industry leader Applied Materials (NASDAQ:AMAT), which is seen as a positive indicator for the company's growth trajectory.
The report anticipates that Comet will capture a 25% share of the RF generator market by 2030 due to the industry's "winner-takes-all" dynamics.
This market share expansion, coupled with the Malaysian facility's increased capacity, is expected to more than double Comet's revenues and EBITDA between fiscal years 2023 and 2027. This growth projection is considered to be superior to that of other semiconductor capital equipment (semicap) manufacturers.
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