Story
Comet Holding Stock Surges 10% After BofA Issues Double Upgrade to 'Buy'
Summary
Shares of the Swiss technology firm jumped after BofA Securities upgraded the stock from Underperform to Buy and nearly doubled its price target, citing a strong outlook for the semiconductor memory market.
Shares of Comet Holding AG (COTNE) surged 10.0% on Tuesday after analysts at BofA Securities issued a rare double upgrade on the stock, citing a strengthening outlook for the semiconductor industry. The firm lifted its rating directly from "Underperform" to "Buy," signaling a sharp reversal in its view of the technology company's prospects.
Analyst Thesis
In a note to clients, BofA Securities raised its price target on Comet to CHF 518 from a previous CHF 286. The bank's bullish stance is based on increasing construction of new NAND memory fabrication plants, with visibility on new projects extending into next year and beyond.
Analysts framed Comet as an attractive investment to capitalize on the semiconductor memory buildout, noting the company's significant operating leverage. The firm's Plasma Control Technologies (PCT) division, which supplies critical components like RF generators and impedance matching networks for chip manufacturing, was highlighted as a key driver. Reflecting this confidence, BofA increased its revenue estimates for Comet for fiscal years 2026–28 by 7% to 18%.
AdMarket Reaction
The upgrade served as a powerful catalyst for the stock, which reached a session high of CHF 387.8 before closing at CHF 384. The move marks a significant turnaround from the stock's 52-week low of CHF 167.
The rally appeared to be driven entirely by the company-specific news, as the broader U.S. stock market was mixed. Investors will now be watching for the company's next earnings release, scheduled for July 31, for confirmation of the optimistic outlook.