In a report released today, Joseph Moore from Morgan Stanley downgraded Navitas Semiconductor (NVTS – Research Report) to a Sell, with a price target of $1.50.
Joseph Moore has given his Sell rating due to a combination of factors including increased competition in the GaN market and downward revisions in revenue forecasts. Larger players like STMicro, Infineon, and Renesas have strengthened their positions through acquisitions and partnerships, which may limit Navitas’s ability to capture new market opportunities outside of smartphone chargers.
Additionally, Moore has revised the GaN market growth forecast down to a 38% CAGR through 2028, primarily due to lower average selling price assumptions. This has led to a reduction in Navitas’s revenue estimates for 2025 and 2026, which are now significantly below street expectations. Concerns over limited revenue growth impacting the balance sheet and the potential need for an equity raise in 2026 further support the Sell rating, along with a lowered price target from $2.10 to $1.50.