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Analysts are increasingly focused on the semiconductor industry’s evolving landscape, where strategic mergers and acquisitions are reshaping competitive dynamics.
As companies seek to bolster their technological capabilities and market reach, investors are closely scrutinizing these moves for long-term growth potential.
BofA Securities analyst Duksan Jan took a more cautious stance on Axcelis Technologies Inc. (NASDAQ:ACLS), cutting the rating to Underperform from Neutral and issuing a price forecast of $90, up from $81.
Also Read: GE Aerospace Expands Defense And Semiconductor Partnerships With Kratos, Axcelis
Jan said the higher forecast reflects the long-term promise of Axcelis’ planned merger with Veeco Instruments (NASDAQ:VECO) but warned that the company’s recent stock rally and premium valuation already price in much of that optimism.
While he acknowledged the strategic logic of the deal, which could expand Axcelis’ technology footprint and customer reach, he argued that investors may need to wait several years before seeing material earnings growth from the integration.
The revised $90 price forecast is based on a 17x multiple of BofA’s 2026 estimated earnings per share (EPS) of $4.29, adjusted for net cash.
This is higher than the prior 15x multiple, which Jan said reflects potential long-term revenue and cost synergies from the Veeco tie-up.
However, he maintained that Axcelis’ near-term fundamentals remain weak and its exposure to slower markets, such as SiC power devices and mature-node foundries, continues to weigh on growth prospects.
Jan projected that the Veeco merger could eventually deliver non-GAAP EPS power of about $6 by 2027, driven by expanded scale, new customer access — including TSMC (NYSE:TSM) — and product synergies across ion implantation, annealing, and wide-bandgap technologies such as SiC and GaN.
BofA trimmed its EPS forecasts to $4.29 for 2026 (from $4.38) and $4.91 for 2027 (from $5.22).
Jan said that upside risks include a faster SiC market recovery, stronger DRAM tool sales, and merger synergies, but reiterated his cautious view, emphasizing Axcelis’ limited exposure to AI and memory growth compared to leading semiconductor equipment peers, such as Applied Materials (NASDAQ:AMAT).
Recently, DA Davidson analyst Thomas Diffely reaffirmed a Buy rating on Axcelis Technologies and raised the price forecast to $110 from $90. Around the same time, Benchmark analyst Mark Miller upgraded the stock to Buy from Hold and set a $105 forecast, citing improving growth momentum.
Price Action: ACLS shares are trading 3.03% higher at $81.59 at the last check on Monday.
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