Goldman Sachs Initiates Coverage on Montage Tech with Buy Rating, Sets HK$268 Target

Stock News
03/18

Goldman Sachs has issued a research report initiating coverage on Montage Technology (06809) H-shares with a "Buy" rating and a target price of HK$268. The firm also reinstated its "Buy" rating for Montage Technology (688008.SH) A-shares with a target price of RMB 227. The bank stated that Montage Technology, as a global leader in memory interconnect chips, holds a market share of 36.8% based on 2024 revenue. It expects the company's growth to be driven by increasing demand for advanced memory interconnect technology from cloud computing and AI infrastructure. With growing demand and rapid product expansion, the bank anticipates the company's revenue will grow at a compound annual growth rate of 35% between 2025 and 2032. Goldman Sachs believes that Montage Technology's leading market position, long-term partnerships with memory manufacturers, and proprietary intellectual property should provide long-term technological advantages as it aims to expand into the broader interconnect chip market in the AI era. The bank's net profit forecasts for 2026 and 2027 are 13% and 16% higher than market expectations, respectively, primarily reflecting optimism about higher revenue driven by the company's new product introductions.

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