AXTI Stock Vastly Undervalued Amid Semiconductor Sector 'Anomaly', Analyst Asserts
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Charles Shi reiterated a Buy rating on AXT Inc (NASDAQ:AXTI) but lowered the price target to $5 from $8. Shi believes the stock is undervalued, trading at 0.6x its book value, which is an anomaly in the semiconductor sector. AXTI's revenue is expected to recover in 2024 after a decline in the InP business segment.
June 16, 2023 | 6:50 pm
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Needham analyst Charles Shi reiterated a Buy rating on AXT Inc, lowering the price target to $5 from $8. The stock is undervalued, trading at 0.6x its book value, and revenue is expected to recover in 2024.
The analyst's reiteration of a Buy rating and the belief that the stock is undervalued indicate a positive outlook for AXTI. Although the price target has been lowered, the expectation of revenue recovery in 2024 suggests potential growth in the stock's value. This news is highly relevant and important for investors in AXTI, and the confidence in the analysis is high.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100