LEM, a Swiss manufacturer of electronics components, has seen its shares rise by 5%, reaching CHF 640. This marks the highest level since August 2025 and a 13-month high. The uptick is largely attributed to a positive assessment by Vontobel analyst Arben Hasanaj, who has maintained his buy recommendation and increased the target price for the stock from CHF 600 to CHF 800. This new target suggests a 25% potential gain from the previous day's closing price.
Hasanaj expects positive order trends to continue for LEM, with data centers and the associated expansion of power supply and transmission infrastructure being the main drivers. The increased demand even exceeds LEM's supply capabilities. The anticipated sales surge is expected to have a disproportionately positive impact on the company's results due to favorable pricing and cost optimization efforts in Meyrin, GE. Hasanaj forecasts an average increase of 2-3% in revenue and 6-12% in operating profits (EBIT) by 2028/29.
The analyst notes that LEM is taking decisive steps out of a prolonged market downturn and is expected to benefit from its optimized cost structure. The fundamental improvement in demand is also likely to strengthen LEM's position in ongoing discussions with strategic parties. The company has been actively pursued as an acquisition target, with management reporting in May that it is in the focus of certain interested parties and is exploring strategic options to enhance long-term value creation.
LEM's shares have seen significant growth, rising by approximately 150% since the last low point in March 2026. However, not all analysts are convinced, with the average target price at CHF 535, below the current share price. Unless further analysts follow Hasanaj's lead and adjust their forecasts upwards, weaker share prices may be expected in the medium term.
