TD Cowen analyst Krish Sankar has maintained their bullish stance on ICHR stock, giving a Buy rating yesterday.
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Krish Sankar has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Ichor Holdings. Despite a reduction in the price target from $28.00 to $22.00, the long-term growth potential in the semiconductor capital equipment market remains a key driver for the stock. Sankar acknowledges that while gross margins have been disappointing, the company’s strategic initiatives, such as the adoption of its proprietary internal valve system by a third customer and the qualification of a next-generation internal flow control system, position it well for future growth.
However, there are near-term challenges that need to be addressed, including margin missteps and hiring frictions, which have impacted investor confidence. Additionally, while tariffs and CEO succession plans add some uncertainty, these are seen as manageable. The expectation of growth in the years 2025 and 2026, along with improvements in gross margins, supports the Buy rating, as these factors are anticipated to contribute positively to the company’s financial performance in the long run.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ICHR in relation to earlier this year.