
AXT (AXTI) Stock Forecast & Price Target
AXT (AXTI) Analyst Ratings
Bulls say
AXT Inc. has demonstrated a significant improvement in operational metrics, with operating margin (OM) rising from -34.0% to -1.4% in the second quarter, driven by increased volume and gross margin (GM), which improved to 22.4% from 8.2%. The company's GaAs revenue experienced a quarter-over-quarter growth of 21%, reaching $7.5 million, indicating a robust demand for wireless RF devices, while management anticipates a further revenue increase to approximately $26 million in the following quarter. As AXT continues to enhance its access to licenses and accelerates optics revenue, its future revenue potential appears to be well positioned beyond historical averages.
Bears say
The financial reports indicate a significant downturn in AXT Inc's revenue generation, particularly with Indium Phosphide revenues declining by 39% quarter-over-quarter and 12% year-over-year, exacerbated by challenges in obtaining export permits. Additionally, the company's gross margins fell to 20.9% in Q4, a decrease of approximately 140 basis points from the previous quarter, although they improved from the prior year. Macroeconomic pressures, including rising oil and gas prices and potential drops in consumer spending, further substantiate a negative outlook for the company’s financial performance moving forward.
This aggregate rating is based on analysts' research of AXT and is not a guaranteed prediction by Public.com or investment advice.
AXT (AXTI) Analyst Forecast & Price Prediction
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