Margin Guidance SkepticismSkepticism remains on FY24 margin guidance, which appears stretched and requires a significant increase versus recent years.
Revenue DeclineFY25 revenue could decline by 5-10% year-over-year due to lack of signs for a near-term SiC/EV recovery, ongoing delays in GaN's broad adoption, and a slowdown in LED shipments.
Stock PerformanceThe stock has been the worst performer in our coverage universe in 2024 so far and now has fallen well below our price target.