Emcore price target lowered to $1 from $2 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Emcore to $1 from $2 and keeps a Hold rating on the shares. While the stock is very cheap, the overriding concern that the firm has remains the balance sheet. To bridge the losses and restructuring costs, Craig-Hallum isn’t certain Emcore can do it without dilution; its model assumes some equity capital to support the bridge to breakeven. The firm waits for progress on the balance sheet and approaching breakeven before expecting the market to value the stock appreciably higher.