NVTS stock exploded higher in early morning trade on November 15, 2021, after a Jefferies analyst initiated coverage of the stock with a buy rating.
- 1 Navitas Semiconductor initiated with a Buy at Jefferies
- 2 NVTS stock price target raised to $20 from $14 at Craig-Hallum
- 3 Baird starts power efficiency leader Navitas Semiconductor with Outperform
- 4 Navitas Semiconductor, the Industry Leader in Gallium Nitride (GaN) Power ICs, Announces Third Quarter 2021 Financial Results
- 5 VIDEO Navitas’ chip technology is faster, cooler and more efficient: CEO
- 6 NVTS Stock Technical Analysis
Jefferies analyst Mark Lipacis initiated coverage of NVTS stock with a Buy rating and $24 price target. Navitas’ unique position as a supplier of highly integrated, low-cost, high-efficiency GaN-on-Si power chip charging solutions that charge three times faster and 40% more efficiently than existing Si technology position it as a unique “pure-play ESG” company and will translate to high growth and a premium valuation, Lipacis tells investors. He expects Navitas to post a two-year revenue compound annual growth rate of 140%, Lipacis noted.
NVTS stock price target raised to $20 from $14 at Craig-Hallum
On November 10, 2021, Craig-Hallum analyst Richard Shannon raised the firm’s price target on NVTS stock to $20 from $14 and kept a Buy rating on the shares. The analyst believes the company has had a “solid start” to its public company life, with Q3 sales/gross margin were understandably light due to industry supply issues. While his near-term forecasts come in somewhat based on this, Shannon continues to believe in the value-add of GaN in fast chargers and expects penetration to increase rapidly. He remains constructive on Navitas’ ability to penetrate other markets outside of fast charging over the next few years.
On November 10, 2021, Baird analyst Tristan Gerra initiated coverage of NVTS stock with an Outperform rating and a $22 price target. The analyst calls it a pure-play on power efficiency. The company is engaged with over 90% of smartphone and notebook OEMs, with data center and solar customers targeted to ramp in 2023 and EVs in 2025. He said strong customer traction reflects on its silicon integration and performance/efficiency leadership, first-mover advantage, and pace of new product introductions.
On November 9, 2021, Navitas Semiconductor Corporation (Nasdaq: NVTS and NVTSW), the industry leader in GaN Power ICs, announced financial results for the third quarter ended September 30, 2021.
- Year-to-Date Revenues Increased 128%
- New GaNSense™ IC Technology Accelerates Industry Transition to Ultrafast Charging
- Strategic Tier-1 and Aftermarket Wins and Deals
- Closed Business Combination on 10/19/21 With >$250mm in Cash to Support Growth
Net revenues for the third quarter of 2021 were $5.6 million, up 61 percent from the third quarter of 2020. Revenues for the first nine months of 2021 increased 128% over the same period in 2020. GAAP net loss for the third quarter of 2021 was $9.5 million, or $0.57 per share, compared to a GAAP net loss of $4.1 million, or $0.27 per share in the third quarter of 2020. On a non-GAAP basis, net loss for the third quarter of 2021 was $6.6 million, or $0.39 per share, compared to a non-GAAP net loss of $3.8 million, or $0.26 per share, in the third quarter of 2020.
“Worldwide GaN penetration in the $2B fast charger market is estimated at only 2-3% so far, so we expect a fast revenue ramp ahead in mobile plus the higher power expansion markets of data center, solar, and EV,” said Gene Sheridan, co-founder, and CEO. “Couple that with next-gen technology introductions, growing team strength, and more than 130 patents issued or pending, and we have an extraordinary opportunity in front us is to become the next-generation power semiconductor leader.”
Customer / Product Highlights
Third generation GaNSense power IC platform launched:
- Built-in, real-time precision system sensing with autonomous control and protection
- 30% average charger size reduction vs discrete GaN designs with enhanced robustness and reliability
- Already in production with Lenovo YOGA laptop and Xiaomi Note 11 Pro+ smartphone fast chargers
- Trailblazing a new smartphone ‘ultra-fast charger’ market sector
- Charge a 4,500 mAhr battery from 0-100% in as little as 20 minutes
- 120W capability in production at Xiaomi using new GaNSense platform
- Strategic cooperation announcement with Anker – a global leader in fast charging technology.
- Two new GaN chargers launched in the third quarter with more to follow
- Expands mobile charger focus to also include residential energy storage platform development
- Twenty-four new GaN fast chargers launched in the market
- 164 models now in mass production, including 5 new models at Baseus, one of the fastest-growing aftermarket-charger companies
- Another 150+ in development for production in the coming quarters
- High-power expansion markets: data center, solar & EV:
- Market-specific GaN IC prototypes sampling in the fourth quarter of 2021
- Significant endorsements from Enphase Energy, Brusa, and Compuware, leaders in solar, EV, energy storage and data center power markets respectively
- Roadmap alignment with Xiaomi – from mobile chargers to their recent $10B announcement to enter the EV market
- After the quarter, the Company completed de-SPAC business combination with approximately 117.7 million shares outstanding and approximately $260 million in cash and cash equivalents to support growth.
- Team strength grew by approximately 50%, to approximately 150 staff worldwide.
- New offices and teams in China and Europe address expansion markets.
The company issued the following guidance for the fourth quarter of 2021. Revenues are expected to be $7.4 million-plus or minus five percent, representing approximately 60% growth compared to the fourth quarter of 2020. GAAP and non-GAAP gross margin is expected to be roughly 44 percent for the quarter. GAAP operating expenses are expected to be approximately $18 million. Non-GAAP operating expenses are expected to exclude about $8 million, most of which reflect stock-based compensation. We expect our basic and diluted share count in Q4 to be approximately 97 million.
Gene Sheridan, Navitas co-founder and CEO, joins ‘Power Lunch’ to explain why Navitas is better set up to profit from the semiconductor shortage than other companies, and which chip material will support the future of electric vehicle manufacturing.
NVTS Stock Technical Analysis
The rising large players volume and money flow look beautiful. In the last month, NVTS has been trading in the 11.90 – 19.08 range, which is quite wide. It is currently trading near the high of this range. NVTS stock hasn’t been trading for long, so we don’t have an accurate technical rating. NVTS stock does not present a quality setup at the moment. Prices have been extended to the upside lately. For an excellent entry, it is better to wait for a consolidation. Click here to sign up for email alerts on when NVTS stock is a good entry.