AXT Inc. price target lowered to $3.70 from $5 at B. Riley

B. Riley analyst Dave Kang lowered the firm’s price target on AXT Inc. to $3.70 from $5 and keeps a Neutral rating on the shares following the Q1 report. While the current slowdown is mostly due to component customers adjusting inventories, the concern is there could be a second phase of a slowdown if and when the economy enters into a lengthy recession, perhaps by late 2023 or early 2024, the analyst tells investors in a research note.