Craig-Hallum upgrades Emcore to Buy, raises price target to $3

As previously reported, Craig-Hallum analyst Richard Shannon upgraded Emcore (EMKR) to Buy from Hold with a price target of $3, up from $1. The firm notes that Mobix Lab’s (MOBX) all-cash offer to buy Emcore earlier this week creates a wide range of outcomes for the stock over various time periods that investors may be contemplating, likely resulting in a stock price much different than what the stock trades at today. Craig-Hallum thinks that the Emcore Board of Directors may find it difficult to turn down an offer that was 200% above the prior day’s close, and one that provides another 55% upside from yesterday’s close, when the alternative is much riskier, will take longer to play out, and would have a negative impact on the short-term stock price. The firm leans towards Emcore accepting an offer, whether it’s Mobix Lab’s current one or an improved one.