Berenberg Lifts VAT Group Estimates, Price Target on 'Stronger, Longer' Semiconductor Upcycle; Hold Maintained

05:53 AM EDT, 10/07/2026 (MT Newswires) -- Berenberg raised its earnings forecasts and price target for VAT Group (VACN.SW), noting confidence in a "stronger and longer" semiconductor upcycle as artificial intelligence drives up memory demand. The research firm raised its sales estimates for 2027 and 2028 by 7.1% and 13.5%, respectively, also reflecting the Swiss vacuum valve manufacturer's ability to outperform wafer fab equipment, according to a Wednesday note. For 2026, Berenberg made "only modest" revisions to its forecasts, with its sales projections up by 0.7%. "We believe this semiconductor cycle could last around three years rather than the more traditional pattern of roughly two years of expansion followed by one year of contraction. The key difference is AI: memory requirements, particularly DRAM, have increased much faster than expected, while advanced logic remains robust," Berenberg said. As such, the stock's price target was raised to 695 francs from 640 francs. Zooming in on the third quarter of 2026, analysts expect sales of 384 million francs, near the upper end of the company's guidance range of between 355 million francs and 385 million francs. Berenberg expects another "very strong" quarter for orders at 515 million francs, which it said would provide "substantial visibility" into 2027. Meanwhile, Berenberg reiterated VAT Group's hold rating due to valuation, saying that the stock "is one of, if not the most expensive, semiconductor equipment companies globally."