Needham analyst Nick Doyle maintained a Buy rating on MagnaChip (MX – Research Report) today and set a price target of $6.00.
Nick Doyle has given his Buy rating due to a combination of factors that highlight MagnaChip’s strategic transition and potential for growth. The company is making a significant shift by exiting the Display business by the second quarter of 2025, which is expected to reduce operating expenses substantially. This move allows MagnaChip to focus its resources on analog power manufacturing, which is seen as a more promising area for future growth.
Furthermore, while the company’s revenue and margin targets are ambitious, the reduction in losses is notable regardless of the speed at which new products are adopted. The introduction of a CY26 model suggests market growth alignment, and the company’s valuation is attractive as it trades below its analog peers. Doyle is optimistic about management’s ability to achieve break-even targets in the latter half of 2025 and gain momentum with new product designs, which supports the Buy rating.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $6.00 price target.
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