Supply chain headwinds aren’t bad for all companies…
The post Could Altium shares benefit from the global chip shortage? appeared first on The Motley Fool Australia. –
The Altium Limited (ASX: ALU) share price has tracked lower in 2022 and is now in the red by 42% since the start of the year.
At the time of writing, the electronic design software companyâs shares have gained 2.32% on the day to trade at $26.29 apiece.
In broad market moves, the S&P/ASX All Technology IndexÂ (ASX: XTX) has also slipped in 2022 — by 38% — but is up 1.73% from the open today.
Altium share price to benefit from chip shortage?
“Last year, supply tightness dovetailed with the rebound in consumer and business demand, causing a lot of headaches across the supply chain,” says Counterpoint Research.
It says these shortages are starting to ease, and that inventories are starting to build back up in order to fill demand.
“The issue now isnât shortages but a shock to the system from lockdowns, which is having a domino effect across China at the moment,” it added.
Nevertheless, analysts at Morgan Stanley note the global semiconductor chip shortage could be a net positive for ASX shares such as Altium.
The Morgan Stanley team reckons the market has overlooked how the company is benefiting from the current supply-chain headwinds plaguing global markets, Hans Lee of Livewire writes.
Specifically, global chip shortages have led to a surge in demand for Altium’s products, it says, which is a potential sales tailwind.
The broker values Altium at $35 per share on a buy recommendation.
There are still plenty of other risks to contend with right now for ASX shares. Plus, with the Altium share price down more than 28% in the last 12 months, it has a way to go before recovering to former highs.
The post Could Altium shares benefit from the global chip shortage? appeared first on The Motley Fool Australia.
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.