AXT Inc (AXTI) has disclosed a new risk, in the Corporate Activity and Growth category.
AXT Inc. stands exposed to financial risks that hinge on the performance of its raw material suppliers, which are integral to its vertically integrated supply chain. Should these suppliers encounter a downturn in revenue, selling prices, margins, or heightened operating costs, AXT Inc.’s overall financial results could be adversely affected. Particularly vulnerable are the contributions from equity-accounted joint ventures, which after adding $1.9 million in 2023 and $6.0 million in 2022, could significantly diminish AXT Inc.’s consolidated earnings. These joint ventures last reported a loss in 2019, which underscores the potential volatility and impact on AXT Inc.’s financial health.
The average AXTI stock price target is $4.76, implying -2.26% downside potential.
To learn more about AXT Inc’s risk factors, click here.
