Ahead Of The Bell: Credit Suisse Upgrades Amkor

NEW YORK (AP) — Credit Suisse upgraded Amkor Technology Inc. to "Outperform" from "Neutral" on Wednesday, saying higher demand for the semiconductor packaging and testing company's products should boost gross margins and drive up its stock price.

A higher proportion of high-end products in its sales mix should benefit Chandler, Ariz.-based based Amkor, wrote analyst Satya Kumar in a research note. He raised his price target on the stock by $1 to $8, implying a gain of more than 40 percent from Tuesday's closing price. Even that target is conservative, Kumar said.

Kumar said gross margin could rise as high as 30 percent, at its low point will not be lower than 13 percent. He said the current quarter is on track for the higher end of the company's guidance.

In July, Amkor said it expected gross margin between 23 and 25 percent in the third quarter, and net income between 17 cents and 22 cents per share.