Crispr Therapeutics shares tumble after significant earnings miss
On Monday, Goldman Sachs updated its outlook on VeriSilicon (688521:CH) shares, raising the price target to EUR44.00 from the previous EUR39.00, while keeping a Neutral rating on the stock. The adjustment comes as the firm anticipates a significant increase in VeriSilicon's revenues.
The company is expected to report a 38% year-over-year rise in revenues for the fourth quarter of 2024, amounting to Rmb789 million. This forecast follows a notable recovery in growth during the third quarter of 2024, where revenues grew by 24% compared to the same period in the previous year. The positive revenue trajectory is attributed to robust order growth since the fourth quarter of 2023, which exceeded Rmb2 billion.
VeriSilicon's revenue boost is partly due to the successful management of its chipset production business, which is reported to be stabilizing. Additionally, the firm recently introduced a new generation of GPU IP based on its Vitality architecture. This new offering is designed to enhance computing capabilities and provide a more comprehensive range of GPU and AI-related IP solutions and design services. This expansion is aimed at meeting the increasing demands of VeriSilicon's clients.
The Neutral rating by Goldman Sachs suggests that while the analyst acknowledges the company's growth prospects and recent developments, they advise a cautious stance on the stock at the current price level. The raised price target reflects the firm's recognition of VeriSilicon's operational advancements and market opportunities, yet the rating indicates that the stock's potential gains may already be reflected in its current market price.
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