Photronics: Mismatched Valuation And Growth Profile Suggest Upside

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Investment overview: Photronics, Inc. (NASDAQ:PLAB) is a leading photomask technology supplier to the semiconductor industry, focusing on integrated circuit and flat panel display technology. Shares are priced today as they were to start 2022, despite a sizable reduction in debt, increasing cash flows, improved valuation, and impressive growth. This rare combination of value and growth suggests shares were, and remain, mispriced. We arrive at a $25 price target based on valuation targets, and note that this stock is cheaper than all of its peers despite superb growth.

seekingalpha.com     Dec 14, 2022