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On Thursday, Everspin Technologies (NASDAQ:MRAM), a $118 million market cap semiconductor company, received an optimistic outlook from Needham, as coverage was assumed by analyst Nick Doyle, who set a Buy rating on the stock along with a price target of $8.00. Doyle took over coverage with a positive stance, highlighting the company’s revenue trends and potential in the satellite industry. According to InvestingPro data, analyst targets for the stock range from $8 to $10, suggesting significant upside potential.
Everspin, a developer of magnetoresistive random-access memory (MRAM) technology, has been experiencing an upward trend in product revenue since the third quarter of 2024, which is expected to continue through the calendar year 2026. With current revenues of $50.4 million and an impressive gross margin of 51.84%, this growth is attributed to the company’s successful design wins in both Spin-Transfer Torque (STT) and Toggle MRAM technologies.
The company also collaborates with multiple licensing partners who are at various stages of development. These partnerships are seen as a source of high-margin revenue streams for Everspin, with the potential for future foundry and royalty opportunities. The licensing strategy is part of Everspin’s broader efforts to capitalize on its MRAM technology across different application areas.
Doyle specifically pointed to the satellite sector as a promising area for Everspin’s technology. The company’s recent product announcements are expected to open up greater opportunities in this space by the calendar year 2026. MRAM’s durability and reliability make it an ideal choice for space applications, where traditional memory technologies may fail due to harsh conditions.
The new price target of $8.00 reflects a positive outlook for Everspin’s financial performance and market position. While trading at a high P/E ratio of 149.65, the company maintains strong financial health with a current ratio of 6.48. As the company continues to secure design wins and expand its reach into new industries like aerospace, the increased revenue from product sales and licensing agreements is anticipated to drive growth. For deeper insights into Everspin’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and expert research reports.
Everspin’s focus on innovation and strategic partnerships, along with the expected increase in demand for MRAM technology, particularly in the satellite industry, positions the company for potential success in the coming years. The upgraded rating and price target from Needham underscore confidence in Everspin’s trajectory.
In other recent news, Everspin Technologies reported its Q1 2025 earnings, surpassing expectations with a revenue of $13.1 million, compared to the forecast of $12.3 million. The company also posted an earnings per share (EPS) of $0.02, outperforming the anticipated loss of $0.02. Everspin continues to project revenue for Q2 2025 between $12.5 million and $13.5 million, with expectations for stronger performance in the latter half of the year. The company remains focused on expanding its product offerings and securing design wins in key markets. Everspin’s MRAM product sales remained stable, while licensing and royalty revenue saw a decline from the previous year. The company has also launched new products, maintaining a strong presence in the automotive, aerospace, and defense sectors. Everspin’s cash and cash equivalents were reported at $42.2 million, highlighting a strong financial position.
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