Amkor Up; Credit Suisse Upgrades

Amkor Technology (AMKR) shares are sharply higher this morning after Credit Suisse analyst Satya Kumar raised his rating on the semiconductor packaging and test company to Outperform from Neutral. He raised his price target on the stock to $8, from $7; the stock closed Tuesday at $5.63.

Kumar writes that the upgrade follows meetings with several tech supply chain companies in Taiwan. He believes near-term strength in demand and a mix shift towards higher-value packaging should lift AKMR’s gross margin. Kumar thinks margins can peak at 28%-30%, compared with 27% at prior peaks.

The analyst adds that the company’s September quarter is tracking towards the higher end of guidance, with the fourth quarter now looking flat to up, rather flat to down, as previously expected.

AMKR today is up 47 cents, or 8.3%, to $6.10.