SkyWater Technology price target raised to $14 from $9 at Piper Sandler

Piper Sandler analyst Harsh Kumar raised the firm’s price target on SkyWater Technology to $14 from $9 and keeps an Overweight rating on the shares. The firm notes SkyWater reported results that surpassed consensus expectations for the December quarter. The company cited tailwinds from customer funded tool revenue within its ATS segment, which it expects to grow throughout the year due to increased levels of customer funded capex. Conversely, SkyWater is dealing with the macro impacts of declines in the industrial end markets, which Piper expects to continue through at least the first half of the year. Despite the macro headwind, the firm feels that with the focus of the U.S government trying to ensure semiconductor manufacturing and SkyWater making efforts to boost its commercial business, the company is well-positioned to execute on its longer-term growth drivers.