Navitas Semiconductor stock price target lowered to $8 at Rosenblatt

Investing.com - Rosenblatt lowered its price target on Navitas Semiconductor (NASDAQ:NVTS), currently valued at $1.29 billion, to $8.00 from $10.00 on Tuesday, while maintaining a Buy rating on the shares. The stock, trading at $6.68, has shown remarkable strength with a 125% gain year-to-date.

The price target reduction follows Navitas’ quarterly results that were roughly in line with expectations, though the company’s guidance for the third quarter of 2025 came in below consensus estimates. According to InvestingPro data, the stock generally trades with high price volatility, which investors should consider when evaluating this guidance update.

Rosenblatt cited ongoing trade negotiations between China and the United States as creating significant uncertainty for the China-based handset charger segment, a key market for Navitas.

In response to these challenges, Navitas management is reallocating resources toward the data center market, where the company’s high-voltage GaN and SiC products offer competitive advantages.

Despite the reduced price target, Rosenblatt remains positive on Navitas shares, pointing to long-term revenue and profit growth opportunities in data center power solutions.

In other recent news, Navitas Semiconductor reported its second-quarter 2025 earnings, revealing a larger-than-expected loss with an EPS of -$0.25, compared to the forecasted -$0.05. However, revenues slightly exceeded expectations, coming in at $14.49 million against a $14.36 million forecast. Despite these mixed results, the company’s stock price showed a positive reaction in aftermarket trading. Craig-Hallum downgraded Navitas from Buy to Hold, citing poor third-quarter sales guidance affected by tariff issues, a reduced focus on low-end mobile markets in China, and cuts to solar tax credits. Meanwhile, Needham raised its price target for Navitas to $8.00 from $3.00, maintaining a Buy rating. Needham noted that while Navitas’s guidance fell below Street estimates, the firm expects near-term estimates to be compressed as the company reconfigures its Mobile business and faces ongoing tariff uncertainty. These developments come as the company navigates a challenging market environment.

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