Needham analyst Charles Shi has maintained their neutral stance on ACLS stock, giving a Hold rating today.
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Charles Shi has given his Hold rating due to a combination of factors including Axcelis Technologies’ recent performance and future outlook. The company reported better-than-expected results and guidance, surpassing consensus estimates in both revenue and earnings, largely driven by stronger revenue from Systems and CS&I. However, despite this positive performance, management’s outlook for the second half of 2025 shows only a modest improvement compared to the first half, with flat revenue expectations from China, indicating a significant year-over-year decline.
Additionally, Axcelis Technologies has not yet signaled a clear turning point in the business cycle, as evidenced by their expectation that the book-to-build ratio will not reach 1x in the latter half of 2025. While the company’s return to a beat-and-raise performance is a positive sign, these factors contribute to a cautious stance, leading to the decision to maintain a Hold rating on the stock.