COMET: Strong growth in orders on hand!

At the recent presentation of the 2025 annual results, the mood at Swiss semiconductor equipment manufacturer COMET was pretty downbeat. Although sales increased by +2.6% to CHF 457 million last year, the operating result at EBITDA level fell by a hefty -20.1% to CHF 46.3 million; net profit fell by an even more steep -62.8% to CHF 12.2 million. Expansion in Asia, exchange rate effects, a poor mix of products and regions and an unusually high tax rate were cited as the main reasons. Management refrained from providing specific target ranges for the annual outlook: on the one hand, the course and intensity of the upswing are still difficult to assess, and on the other, COMET has often burned its fingers with forecasts. However, the company remains fairly convinced that the upturn has now arrived. The beginning of 2026 is said to have got off to a very good start! COMET expected a "strong" order intake for the first quarter and the forecasts indicate that the investment cycle will be more vigorous and longer than was assumed not so long ago.

However, the semiconductor equipment supplier COMET has now reported a year-on-year decline in sales of -4.5% to CHF 106 million in 1Q26 (expected: CHF 105 million). However, the significantly stronger order intake of +22% to a very good CHF 145 million (expected: CHF 129 million) is a sign of things to come! The book-to-bill ratio reached 1.4, signaling an upturn in demand. COMET confirms its outlook for 2026 and expects significantly higher sales and an improved EBITDA margin (compared to the previous year). COMET's management correctly predicted that the investment cycle is now beginning to turn and that much more growth is to be expected. The volatile COMET share price is likely to rise further. We are raising the price target to CHF 340, but would sell there (valid until the end of May).