Benzinga | Jul 28, 2021 12:51PM EDT

JPMorgan Upgrades United Microelectronics To Overweight, Sees 32% Upside

* JPMorgan analyst Gokul Hariharan has upgraded United Microelectronics Corp (NYSE:UMC) to Overweight from Neutral with a NT$70 price target, implying a 31.8% upside.

* While the stock has been range-bound in the last four to five months, along with the rest of the logic semi space, due to concerns over the peak of the cycle, Hariharan believes the semi upcycle should continue into 2022.

* UMC should see gross margins approaching 40% levels in the next few quarters with supply tightness unlikely to ease before 2023 and with a stronger-than-expected blended price increase, he added.

* The company posted its Q2 results today.

* Price action: UMC shares traded higher by 3.29% at $9.53 on the last check Wednesday.