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AZ Electronic Materials has leading position in growing markets, says JP Morgan Cazenove

Published: 11:04 15 Jul 2013 BST

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Now is an ideal time to take a position in AZ Electronic Materials (LON:AZEM), says broker heavyweight JP Morgan Cazenove, which has started coverage with an 'overweight' rating.

The group produces high quality specialty chemicals for leading edge semiconductor and flat panel display (FPD) manufacturers, and, despite suffering a profit warning in April, the long term growth story is intact, says analyst Jolyon Wellington.

Its position will be boosted by demand for increasingly complex semiconductors for smartphones and tablets, reckons the analyst, as well as the increase of a chemical used in screen manufacture.

It trades on a price-to earnings ratio that implies 15% upside to the broker's December 2014 target price of 392p, the analyst added.

Its first half results on August 15 and a capital markets day on September 26 could be catalysts for a re-rating, according to Cazenove.

Shares rose 1.62% to 345.40p.

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