VAT Group AG "Still at the beginning of a very strong semi cycle;..."

Research evidence excerpt

VAT Group AG "Still at the beginning of a very strong semi cycle;..."

We see upside risk to consensus earnings estimates of 10-20% for the next

12/26E 11.31 11.31 0 10.23

years. In more detail: Due to the risk of some supply chain bottlenecks and the speed to

12/27E 14.77 15.76 7 14.28

ramp, we leave our VAT 2026E organic sales growth forecasts of +29% y/y or total sales

12/28E 17.18 19.98 16 16.57

of CHF1,381m (cons. CHF1,286m) unchanged. However, for 2027E we now forecast

organic sales of +34% y/y to CHF1,853m (cons. CHF1,623m) and for 2028E of +23% y/ Joern Iffert, CFA

y to CHF2,287m (cons. CHF1,831m). Adjacencies, rising demand for higher-end vacuum Analyst

applications and efficient7fast capacity ramps could result in additional upside risk to joern.iffert@ubs.com

our earnings forecasts but we watch out for more granularity. +41-44-239 88 00

Sebastian Vogel, CFA

View on investor sentiment Analyst

sebastian.vogel@ubs.com

There is a limited amount of companies in Europe in the small and midcap space with

+41-44 239 90 45

material exposure to semi WFE capex but investor demand for these stocks is high at the

moment given the supportive AI themes. However, although we observe positive Francois-Xavier Bouvignies

investor sentiment on VAT, we think the magnitude of the semi WFE upcycle and positive Analyst

francois.bouvignies@ubs.com

consensus revision potential are still underestimated. We are still at the beginning of a

+44-20-7568 7105

strong multi-year semi WFE capex growth cycle. Recall, order intake in the semi vacuum

supply chain only started to accelerate by end of 2025.

Valuation: New DCF-based PT CHF745 (from CHF650)

Due to our increased EPS forecasts, we raise our PT to CHF745. The stock trades on