Earnings PressureThe widening of the EBITDA margin range introduces some risk to Street views, potentially putting downward pressure on consensus.
Market Share ConcernsChina overhang remains, as VAT did not improve understanding on its ability to maintain share in the BoM of its Chinese customers.
Revenue ImpactLower China revenue for the non-Chinese OEMs is seen as a material headwind to the overall market, impacting the growth of VAT's main US customers.