2024-02-16 17:22:27 ET
Summary
- AEHR has seen its multiple compress significantly as it lowered its guidance amidst a weak EV market.
- The lowered guidance is due to uncertainty around the timing of orders, after recent changes in forecasts by existing and new customers due to the difficult environment, particularly for EVs.
- That said, AEHR is focused on expanding its customer base for SiC and GaN, with plans to grow the number of customers to 12.
- There is one particular new customer who is significant and currently undertaking an automotive qualification, which is expected to ramp up in FY2025.
- AEHR is also diversifying revenues through the GaN market, and it is currently working with two GaN market leaders.
Today, I aim to highlight the opportunity set for Aehr Test Systems ( AEHR ) after the company's weak share price performance since late last year.
I have previously written an in-depth article on AEHR that can be found here , highlighting the SiC opportunity, the AEHR differentiation factor, its key products and customers.
As such, I will not be repeating those points in this article.
The risk/reward opportunity looks way more attractive today than it did at the time the earlier article was written in July 2023....
Read the full article on Seeking Alpha
For further details see:
Aehr Test Systems: This Is The Time To Buy