Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Rosenblatt Securities downgraded Navitas Semiconductor (NASDAQ:NVTS) from Buy to Neutral on Monday, while maintaining a $12.00 price target. The stock has seen remarkable gains, with a 705% surge over the past six months, according to InvestingPro data.
The downgrade reflects Rosenblatt’s view that market expectations for the impact of 800VDC data center architecture are running ahead of actual market developments. The firm expects the first deployments of 800VDC data centers to begin in 2027. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with technical indicators suggesting overbought conditions.
Rosenblatt analyst Kevin Cassidy noted that while Navitas will benefit from this trend as a wide-bandgap (WBG) power semiconductor pure play, the company will face "plenty of competition" in the space. The company maintains strong financial health with a current ratio of 8.23 and minimal debt, though it remains unprofitable with a -$86.47 million EBITDA for the last twelve months.
The firm increased its valuation multiple to 20x next-twelve-months sales, based on the December 2026 to September 2027 period, to derive the $12.00 price target.
Rosenblatt expressed concern that the stock is trading at approximately 60 times consensus fiscal year 2026 revenue, suggesting investors "may not have the patience to see this market inflect over the next ~2 years."
In other recent news, Navitas Semiconductor has made significant strides in developing advanced 800 VDC gallium nitride (GaN) and silicon carbide (SiC) power devices to support NVIDIA’s next-generation AI computing platforms. This development addresses the growing power needs of AI factories, where traditional power distribution systems are becoming inadequate. Additionally, Navitas announced a transition in leadership, with Chris Allexandre set to take over as President and CEO on September 1, 2025, succeeding co-founder Gene Sheridan. Despite this change, Rosenblatt has reiterated its Buy rating for Navitas, though it has adjusted the stock’s price target to $8.00, down from $10.00. The price target revision follows Navitas’ quarterly results, which were in line with expectations, but the company’s guidance for the third quarter of 2025 fell short of consensus estimates.
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