Craig-Hallum upgrades Vicor to Buy on better royalty outlook, new VPD customers

As previously reported, Craig-Hallum upgraded Vicor (VICR) to Buy from Hold with a price target of $90, up from $55. The firm cites a much higher royalty outlook and engagement on leading-edge VPD solutions that could lead to sales in 2027. On royalties, Vicor’s large upside and increased confidence in growth over the next year or two are big drivers for earnings upside in Craig-Hallum’s model. On Gen 2 VPD, Vicor says it is engaged with a HSDC and a large OEM, where the company believes it is the only product that can support their needs. The firm’s only worry is that the newest VPD product has little experience in the field, so it doubts there will be large volumes right away.