Alpha & Omega price target lowered to $19 from $24 at B. Riley

B. Riley analyst Craig Ellis lowered the firm’s price target on Alpha & Omega to $19 from $24 and keeps a Neutral rating on the shares. Alpha & Omega’s Q1 results showed upside in sales but missed on gross margin and EPS, while the Q2 guide highlighted potential CY26 growth in PC and smartphone content, the analyst tells investors in a research note. Near-term EPS pressure is expected due to a 25% year over year increase in R&D to expand advanced compute and AI socket initiatives, with returns anticipated as revenues ramp in CY27, the firm says.