AXT Inc (AXTI) has disclosed a new risk, in the Natural and Human Disruptions category.
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AXT Inc. faces significant business risks due to potential health epidemics and outbreaks, as evidenced by the impact of the COVID-19 pandemic on its operations and financial performance. The Chinese government’s measures in early 2020, including company closures and travel restrictions, disrupted AXT Inc.’s subsidiaries and joint ventures in China, affecting raw material supply and manufacturing operations. The end of China’s zero-COVID policy in December 2022 does not eliminate the risk of future outbreaks, which could lead to further operational shutdowns and revenue losses. Such disruptions could result in a loss of market share and delayed customer orders, posing a challenge to recapture financial stability.
The average AXTI stock price target is $9.00, implying -13.79% downside potential.
To learn more about AXT Inc’s risk factors, click here.