Photronics: AI-Driven Photomask Upside; Initiate Strong Buy

Company Overview - Photronics, Inc. (NASDAQ: PLAB) is a manufacturer of photomasks used in integrated circuits and flat panel display manufacturing across the US, Asia, and Europe [1] - The company is initiated with a Strong Buy rating and a price target of $32 [1] Investment Thesis - The Strong Buy rating is based on above-consensus expectations for the company's performance [1] - Moretus Research emphasizes a structured framework to identify companies with durable business models and mispriced cash flow potential [1] - The research focuses on underappreciated companies undergoing structural changes or temporary dislocations, which can lead to asymmetric returns [1] Research Methodology - Moretus Research combines rigorous fundamental analysis with a judgment-driven process, avoiding noise and overly complex forecasting [1] - Valuation is based on sector-relevant multiples tailored to each company's business model and capital structure, emphasizing comparability and relevance [1] - The research aims to provide professional-grade insights and actionable valuation, raising the standard for independent investment research [1]