UMS Holdings Limited (UMS) saw its stock soar 3.38% in Monday's intraday trading session, following a positive analyst report from RHB Research. The semiconductor component manufacturer's shares climbed on the back of newly initiated coverage that highlights the company's strong growth potential in the semiconductor industry.

RHB Research analyst Alfie Yeo initiated coverage on UMS Integration with a "Buy" rating and set a target price of S$1.85, significantly higher than the current trading price. The analyst's bullish stance is based on several factors that position UMS for both short-term and long-term growth in the semiconductor sector.

According to the report, UMS is expected to benefit from increased semiconductor equipment spending, a ramp-up in new client orders, and potential margin expansion in the near to medium term. Looking further ahead, the company is seen as a long-term beneficiary of the semiconductor industry's growth, which is likely to be driven by advancements in leading-edge logic, memory technologies, and ongoing investments in capacity expansion. This positive outlook from RHB Research appears to have boosted investor confidence, contributing to the stock's significant price jump.