Needham analyst Charles Shi has maintained their neutral stance on ACLS stock, giving a Hold rating yesterday.
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Charles Shi has given his Hold rating due to a combination of factors impacting Axcelis Technologies. The company reported strong fourth-quarter results for 2024, surpassing market expectations; however, the guidance for the first quarter of 2025 was lowered. This adjustment stems from ongoing challenges in the silicon carbide market, a slow recovery in mature node sectors in China, and a seasonal dip in customer service and installation revenues, despite some positive performance in DRAM and image sensors.
Management anticipates that the company’s revenue in 2025 will likely decline compared to 2024, primarily due to persistent weakness in power semiconductors and mature nodes, especially in China. Although there is expected year-over-year growth in DRAM and slight growth in advanced logic, these are not enough to offset the downturn. The revenue for the second quarter is projected to align with the first quarter, with a modest increase expected in the second half of the year. Given these dynamics and ongoing uncertainties, Shi remains cautious, maintaining a Hold position until more definitive improvements are observed.