Pixelworks (PXLW) has disclosed a new risk, in the Sales & Marketing category.
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Pixelworks faces a significant financial risk due to the expenses associated with a pending Sale, which includes costs for financial advisories, legal, and accounting services, among others. These expenses will be incurred irrespective of the Sale’s completion, potentially impacting the company’s financial stability. Additionally, the company may face a $5,000,000 termination fee if the Purchase Agreement is terminated under certain conditions, although it might also receive the same amount if the termination occurs under different circumstances. This dual possibility of incurring or receiving a termination fee adds a layer of uncertainty to Pixelworks’ financial outlook.
The average PXLW stock price target is $12.00, implying 91.08% upside potential.
To learn more about Pixelworks’ risk factors, click here.