Vicor Corp tumbles after Needham cuts stock rating to 'hold'

Vicor

25/10/2023 18:15

** Shares of power modules maker Vicor Corp  VICR.O  tumble
28% at $38.23, hitting a three-and-half-year low
    ** Brokerage Needham cuts VICR's rating to 'hold' from
'buy', says bookings and backlog were underwhelming in Q3
    ** Co reports Q3 backlog totaled $174.7 mln, a 53% slump
compared to the corresponding period a year ago
    ** "With 2024 looking like a transition year, we reduce our
2024/2025 estimates and downgrade our rating to Hold from Buy as
we believe the shares will be range-bound for the next 12
months" - Needham
    ** Brokerage adds though VICR sees its Gen 5 technology as a
catalyst for AI processor share gains, but Gen 5 products won't
ramp up until 2025
    ** Brokerage Craig- Hallum also cuts Vicor's PT to $65 from
$80
    ** Stock down 27.9% YTD




 (Reporting by Sruthi Narasimha Chari in Bengaluru)
 ((Sruthinarasimha.chari@thomsonreuters.com))