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Investing.com - DA Davidson raised its price target on Axcelis Technologies (NASDAQ:ACLS) stock to $90.00 from $75.00 on Wednesday, while maintaining a Buy rating on the semiconductor equipment maker. The stock, currently trading at $76.93, shows strong financial fundamentals with an InvestingPro Financial Health Score of "GREAT" and appears undervalued based on comprehensive Fair Value analysis.
The price target increase follows Axcelis reporting quarterly results that exceeded expectations, along with a positive outlook despite current semiconductor market conditions.
DA Davidson noted that Axcelis benefited from higher-margin service and spares business, combined with effective cost controls and having appropriate tools to capitalize on pockets of strength in end markets.
The firm is not forecasting a recovery in the semiconductor sector until the second half of 2026, according to its analysis of current market conditions.
DA Davidson emphasized that Axcelis has "plenty of operating leverage" in its business model that could drive "robust stock appreciation over the next few years," reaffirming its bullish long-term view on the company.
In other recent news, Axcelis Technologies reported a strong financial performance for the second quarter of 2025, significantly exceeding market expectations. The company posted earnings per share of $1.13, surpassing the forecasted $0.71. Revenue also exceeded projections, reaching $195 million against an expected $185.94 million. These results highlight the company’s robust financial health and have drawn positive attention from investors. Analysts have taken note of Axcelis’s impressive performance, though specific upgrades or downgrades from firms were not mentioned. The company’s ability to surpass both earnings and revenue forecasts demonstrates its strong market position. These developments reflect a positive trajectory for Axcelis Technologies in the recent quarter.
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