Ichor Holdings: Buy Rating Affirmed Amid Short-Term Challenges and Long-Term Growth Prospects

Analyst Krish Sankar of TD Cowen maintained a Buy rating on Ichor Holdings, retaining the price target of $22.00.

Krish Sankar has given his Buy rating due to a combination of factors that highlight both the challenges and potential growth opportunities for Ichor Holdings. Despite short-term disruptions in lithography and silicon carbide demand, as well as a decline in IMG order rates, Sankar remains optimistic about the company’s long-term growth prospects. This optimism is rooted in Ichor’s alignment with positive trends in wafer fabrication equipment spending and technological advancements in the semiconductor and semiconductor production equipment industries.
While the recent quarter’s revenue and gross margins were slightly below expectations, the strength in core deposition and etch sales provided a counterbalance to weaker sales from other segments. Sankar notes that the December quarter guidance appears to be the cyclical low point, with expectations for sequential sales growth in the March quarter and year-over-year growth in 2026. Additionally, while current margins are underperforming, there is significant potential for improvement, contingent on growth in the core semiconductor business and a rebound in IMG and non-core semiconductor business. These factors collectively support the Buy rating, as Ichor Holdings is positioned to benefit from long-term industry trends despite current challenges.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ICHR in relation to earlier this year.