Bank of America Securities analyst Duksan Jang has reiterated their neutral stance on ACLS stock, giving a Hold rating today.
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Duksan Jang has given his Hold rating due to a combination of factors influencing Axcelis Technologies’ current and future performance. The company is experiencing significant demand reductions and inventory adjustments, leading to expectations of flat sales into the second quarter and only a slight recovery in the latter half of the year. This situation suggests a potential 21% year-over-year decline in sales by 2025, with further risks of delays due to past over-shipments, particularly in the mature and SiC device markets.
Despite these challenges, Axcelis retains a leading market position in the growing SiC device sector, which is expected to see a demand surge as costs decrease. The company may experience a broad-based cyclical recovery by 2026, though from a lower sales base. Given the current uncertainties and the lowered price objective to $70, Jang maintains a Neutral stance, waiting for more definitive signs of demand recovery and improved earnings outlook.