Craig-Hallum analyst Christian Schwab raised the firm’s price target on Aehr Test Systems (AEHR) to $45 from $31 and keeps a Buy rating on the shares after the company announced a $25M follow-on order from its lead silicon carbide customer, which he identifies as ON Semi (ON). The order, for a significant number of FOX-XP systems, "amounts to half of what Aehr did in total revenue for the full year of FY22," according to Schwab. While "very encouraged" by the momentum Aehr is seeing from ON Semi, he is "exceedingly excited" about the opportunity the company has to also ramp with the other major silicon carbide companies, such as STMicroelectronics (STM), Wolfspeed (WOLF) and Infineon (IFNNY), Schwab tells investors. He is "increasingly confident" in his FY23 estimates and continued growth to his FY24 revenue estimate of about $100M for Aehr, the analyst added.
Published first on TheFly
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