Post-earnings, Dublin-based Navitas Semiconductor Corporation (NASDAQ: NVTS) is trending higher in the market. The company provides gallium nitride (GaN) power integrated circuits in the U.S., China, Taiwan, Korea, and globally.
After recording losses of around 56.9% year-to-date on macroeconomic factors including inflationary pressures, supply chain challenges, and Russia’s invasion of Ukraine, the stock has gained more than 13% over the last five days.
The jump in price seems to have followed a 27% year-over-year growth in revenues recorded in the first quarter of 2022. Also, GAAP gross margin for the quarter stood at 44%.
Further, investor confidence got a boost from encouraging comments released by the management. In the earnings press release, Gene Sheridan, the CEO of Navitas, said, “We have reinforced our #1 position in mobile fast and ultra-fast chargers – reaching over 50,000,000 units shipped with zero reported GaN-related field failures – and we are on track with GaN, system R&D and customer developments for our expansion into broader consumer, data center, solar and EV markets.”
In addition, the company also issued a positive outlook. For Q2 2022, net revenues are likely to be in the range of $8 to $9 million. Meanwhile, for 2022, net revenues are expected to double on a year-over-year basis.
Wall Street’s Take
Recently, Rosenblatt Securities analyst Kevin Cassidy maintained a Buy rating and a price target of $15 (113.98% upside potential) on the stock.
Cassidy commented, “As with most semiconductor players, Navitas near-term growth and margins are expected to be disrupted due to China shutdown policies. This despite better than expected demand from other regions around the world…We continue recommending the NVTS shares as the company drives the next level of power efficiencies with its family of FastGaN ICs.”
Overall, the Street is bullish on NVTS stock with a Strong Buy consensus rating. That’s based on five unanimous Buys. The average Navitas price target of $11.20 implies 59.77% upside potential to current levels.
Investors Remain Bullish
According to TipRanks’ Stock Investors tool, investors have a bullish opinion on Navitas shares. Per the tool, 1.9% of investors holding portfolios on TipRanks have increased their stake in NVTS stock over the last 30 days.
Navitas gets an 8 out of 10 on TipRanks’ Smart Score ranking, suggesting that NVTS is likely to outperform market expectations.
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