B. Riley cut ICHR’s PT to $37 from $42 on lower estimates and slightly lower target multiple, but reiterated its Buy rating. The new PT implies 26.9% potential upside to ICHR’s last close.
Analyst Craig Ellis in a note to clients said ICHR’s results were hurt by “supply chain constraints as well as higher cost of goods sold and project R&D staff adds and higher comp to position for increased demand”.
Ellis said ICHR’s stock movement is a reaction to its outlook, with investors “perhaps overlooking H2’s acceleration potential”.
Stifel cut ICHR’s PT to $50 from $59, implying 71.5% potential upside to its last close, and maintained its Buy rating.
Analyst Patrick Ho said ICHR’s results were not much of a surprise as supply chain issues and elevated costs impacted the whole sector. “… the biggest issue for ICHR is components procurement, and this will persist into Jun. (and perhaps into H2),” he said.
But Stifel remains favorably biased on ICHR’s long-term opportunities, given its product portfolio and market positioning. “… it is not demand holding ICHR back, but only supply,” Ho added.
Meanwhile, DA Davidson cut ICHR’s PT to to $60 from $75, implying 105.8% potential upside to its last close.
Cowen cut ICHR’s PT to to $41 from $50, implying 40.6% potential upside to its last close.
ICHR stock declined ~47% YTD.