In a report released today, Quinn Bolton from Needham maintained a Buy rating on SkyWater Technology (SKYT – Research Report), with a price target of $12.00.
Quinn Bolton has given his Buy rating due to a combination of factors that highlight SkyWater Technology’s potential for growth and financial improvement. One of the key reasons is the company’s announcement of acquiring Infineon’s Fab 25 facility, which, despite being initially dilutive to gross margins, is expected to significantly enhance free cash flow and nearly double the company’s revenue.
Furthermore, while there is some uncertainty in government program contributions affecting modest growth guidance for FY25, the acquisition is not yet factored into these projections, suggesting potential upside. Additionally, the company’s focus on advanced packaging and a shift towards new products in wafer services are anticipated to drive growth, particularly in the latter half of 2025, mitigating seasonal fluctuations in the third quarter.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SKYT in relation to earlier this year.
Questions or Comments about the article? Write to editor@tipranks.com