AXT, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Charles Shi from Needham maintained a Buy rating on the stock and has a $5.00 price target.
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Charles Shi’s rating is based on a combination of factors, including AXT’s current challenges and potential for future growth. Despite the company’s recent mixed quarterly results, which fell short of expectations due to delays in the GaAs export permitting process and weak demand in China, there are signs of potential improvement.
Management’s conservative approach to future permitting and focus on improving gross margins in the second half of 2025 indicates a strategic plan to return to profitability. If the permitting process for GaAs and InP improves, AXT could see significant upside in the upcoming quarter. These factors contribute to the Buy rating, with a maintained price target of $5.
According to TipRanks, Shi is a 4-star analyst with an average return of 5.1% and a 49.78% success rate. Shi covers the Technology sector, focusing on stocks such as Entegris, AXT, and Cadence Design.
In another report released yesterday, Craig-Hallum also maintained a Buy rating on the stock with a $0.00 price target.