Street Calls of the Week
Investing.com - Stifel raised its price target on Alpha & Omega Semiconductor (NASDAQ:AOSL) to $29.00 from $25.00 on Friday, while maintaining a Hold rating on the semiconductor stock.
The research firm cited the company’s "materially strengthened balance sheet" as a positive factor, particularly noting the pending $150 million cash sale of a 20.3% stake in Alpha & Omega’s Chongqing joint venture.
Stifel highlighted the company’s stable adjusted free cash flows over the past four quarters, which ranged from $4.4 million to $7.1 million, demonstrating consistent positive performance.
While Stifel expects negative adjusted free cash flows in the current June quarter due to capital expenditure timing, it believes Alpha & Omega can return to neutral or positive free cash flow in the near term, supported by its healthy cash balance of $169.4 million.
The firm concluded that the risk-reward outlook for Alpha & Omega Semiconductor over the next 12 months is "relatively balanced," with the stock offering "solid downside protection" as it trades at what Stifel described as a "favorable PF Net Cash multiple."
In other recent news, Alpha and Omega Semiconductor Ltd reported strong financial results for Q4 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.02, significantly higher than the anticipated $0.0033, representing a surprise of over 506%. Revenue also exceeded expectations, reaching $176.5 million compared to the forecasted $166.4 million. In addition to these financial achievements, Alpha and Omega announced its support for NVIDIA’s new 800 VDC architecture aimed at next-generation AI data centers, which marks a shift from traditional power distribution systems. The company also launched its AOZ17517QI series, a 60A eFuse designed for power protection in data centers and telecom infrastructure, featuring low resistance and compact design. Furthermore, Stifel maintained its Hold rating for the company with a $25.00 price target, following the announcement of the company’s advancements in power device portfolios. These developments position Alpha and Omega to address power conversion needs in high-voltage distribution systems.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.