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Investing.com - DA Davidson has lowered its price target on Ichor Holdings (NASDAQ:ICHR) to $30.00 from $35.00 while maintaining a Buy rating on the stock. According to InvestingPro data, Ichor shares are currently trading at $15.73, significantly below analyst targets ranging from $19 to $30, suggesting potential upside despite recent challenges.
The price target reduction follows Ichor’s weak fourth-quarter guidance, which the firm attributes to third-quarter pull-ins from its two largest customers, Applied Materials and Lam Research.
DA Davidson notes that projected softness at Ichor’s third and fourth largest customers, ASML and ASMI, along with push-outs across its highest margin segment (IMG), also contributed to the disappointing outlook.
Despite the near-term challenges, the research firm suggests investors consider taking advantage of the stock weakness, stating that this earnings report likely represents the peak of negative news for the company.
Management expects the fourth quarter to be the revenue trough, with rising activity indicating the return of higher margin IMG business in the first quarter of 2026 and half-over-half growth in the core semiconductor business in the second half of 2026.
In other recent news, Ichor Holdings reported its third-quarter 2025 earnings, showing a mixed performance. The company achieved a revenue of $239.3 million, marking a 13% increase compared to the previous year and surpassing the forecast of $235.14 million. However, earnings per share (EPS) fell short of expectations, coming in at $0.07 against the anticipated $0.12. Following these results, Stifel downgraded Ichor Holdings from Buy to Hold, citing the weak earnings performance. Stifel also adjusted its price target for the company from $23.00 to $21.00. The downgrade was primarily influenced by a decline in non-semiconductor capital equipment revenue. Despite the earnings miss, the company’s stock experienced a rise in aftermarket trading. These developments highlight the challenges Ichor Holdings faces in balancing revenue growth with earnings performance.
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