Power Components Maker Vicor Faces Challenges Ahead: Analyst Sees Range-Bound Shares Amid Industry Complexities
Portfolio Pulse from Shivani Kumaresan
Needham analyst N. Quinn Bolton has downgraded Vicor Corporation (VICR) from Buy to Hold. Despite beating Q3 FY23 revenue and EPS estimates, Vicor's bookings and backlog remain underwhelming. The analyst also noted that Vicor's visibility is clouded by industry complexities and that its shares will likely be range-bound for the next 12 months. Google's move to a two-stage architecture could lead to Vicor losing its factorized power content, which has led to recent lawsuits.
October 25, 2023 | 7:03 pm
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NEUTRAL IMPACT
Google's move to a two-stage architecture could lead to Vicor losing its factorized power content, which has led to recent lawsuits. The company believes the threat of an injunction could drive Google to come back to VICR.
Google's architectural change could lead to Vicor losing its factorized power content, which has led to recent lawsuits. However, the impact on Google's stock is likely to be neutral in the short term as the situation unfolds.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Vicor Corporation has been downgraded from Buy to Hold by Needham analyst due to underwhelming bookings and backlog, and industry complexities. The company's shares are expected to be range-bound for the next 12 months.
The downgrade by the analyst is based on underwhelming bookings and backlog, and industry complexities. This negative sentiment is likely to put downward pressure on the stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100