| 2018-04-12 08:36:42|
AXTI 08:36 04/12 04/12/18
AXT, Inc. should be bought on weakness, says Craig-Hallum
Craig-Hallum analyst Richard Shannon notes that AXT, Inc. lowered its Q1 sales guidance blaming it on 10 days of shutdowns in Beijing related to air quality. The analyst believes this is a temporary issue that tends to worsen in winter, and won't be an issue when the company moves its facility to Dingxing, well outside of Beijing. Shannon continues to believe AXT, Inc. has a number of good growth/profit drivers over the next several quarters, including GaAs, InP and raw materials pricing, and is also a potential takeout candidate. The analyst reiterates a Buy rating and $12 price target.