Navitas downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Navitas Semiconductor (NVTS) to Underweight from Equal Weight with a price target of $1.50, down from $2.10. The firm says increased competition in gallium nitride and lower selling price assumptions brought down its 2025 and 2026 revenue forecasts for Navitas to 16% and 35% below the Street, respectively. STMicro, Infineon, and Renesas have all made inroads into GaN via acquisitions and partnerships, the analyst tells investors in a research note. Morgan expects opportunities to be captured by more established power semiconductor providers rather than Navitas given their supply assurance and automotive qualification experience.