BofA update shows where active managers are putting money
Investing.com - DA Davidson lowered its price target on Ichor Holdings (NASDAQ:ICHR) to $35.00 from $45.00 on Wednesday, while maintaining a Buy rating on the semiconductor equipment manufacturer. The stock, currently trading at $14.51, has seen significant pressure, falling 31% in the past week and 57% over the last six months. According to InvestingPro data, the stock’s RSI indicates oversold conditions.
The firm cited "self-inflicted wounds" related to operations, staffing, and internal capacity issues that have negatively impacted the company’s near-term margins and earnings performance.
These operational challenges have created what DA Davidson describes as a "couple quarter delay" in what it expects to be a record-breaking multi-year revenue ramp for Ichor.
Despite the reduced price target, DA Davidson maintained its bullish outlook on the stock, predicting that Ichor will "significantly outperform the average semicap name over the next cycle."
The firm acknowledged that while there are "plenty of cross-currents clouding the semiconductor industry today," it remains confident in Ichor’s long-term prospects for revenue, margin, and earnings expansion.
In other recent news, Ichor Holdings reported its Q2 2025 earnings, revealing a significant shortfall in earnings per share (EPS) compared to expectations. The company recorded an EPS of $0.03, falling short of the anticipated $0.32. However, Ichor’s revenue surpassed projections, coming in at $240.3 million against an expected $234.5 million. Despite the earnings miss, the revenue surprise was a positive development for the company. Additionally, B. Riley downgraded Ichor’s stock rating from Buy to Neutral, reducing the price target from $30.00 to $18.00. This downgrade was attributed to concerns about the company’s gross margin performance. The downgrade followed Ichor’s announcement of a CEO transition and its quarterly earnings report. These developments are significant for investors monitoring Ichor Holdings.
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