Craig-Hallum upgrades Aehr Test to Buy on diversifying pipeline

Craig-Hallum upgraded Aehr Test Systems to Buy from Hold with a price target of $25, up from $12. The company’s opportunity is becoming “increasingly open ended” and diversifying away from being just a silicon carbide expansion story, the analyst tells investors in a research note. The firm expects silicon carbide to remain growth challenged in the near term as electric vehicle adoption expectations this year have slowed. However, SiC is anticipated to reaccelerate in 2025 and beyond, contends Craig-Hallum. The firm cites a diversifying pipeline of opportunities and Aehr Test ‘s long-term SiC opportunity for the upgrade.