e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - Barclays has upgraded Aixtron SE (ETR:AIXA) (OTC:AIXXF) from Equalweight to Overweight and significantly raised its price target to EUR20.00 from EUR12.00, citing potential growth in the company’s gallium nitride (GaN) business driven by artificial intelligence applications.
The investment bank has increased its GaN revenue estimates "materially from 2027E" and now sits 5% above consensus sales forecasts. Barclays updated its outlook following Aixtron ’s third-quarter results, which led to cuts in 2025 and 2026 estimates driven by lower silicon carbide (SiC) expectations.
With SiC headwinds now considered "minimal" and optoelectronics strength expected to continue, Barclays sees scope for upside surprises from GaN driven by AI demand that could lead to a "material rerating" of the stock.
Barclays increased its target multiple to 20x from 13x, closer to Aixtron’s median multiple, justifying the higher valuation on "improving sentiment around an AI-growth story" and "a strong competitive position" with near-term expectations now in "a better place."
In an upside scenario driven by faster adoption, Barclays suggests Aixtron could rerate further to 25x (still below its past peak of 30x), which with 20% higher 2027 revenues would imply approximately EUR30 per share.
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