Craig-Hallum Downgrades Aehr Test Systems (AEHR) to Hold

Craig-Hallum analyst Christian Schwab downgraded Aehr Test Systems (NASDAQ: AEHR) from Buy to Hold.

The analyst commented: "Aehr Test negatively pre-released its Q3 results and lowered its FY24 (May) expectations. This is now the second quarter in a row the company has lowered its FY24 expectations, down from original FY24 revenue guidance for $100+ million just two quarters ago. The company is seeing a soft semiconductor capital spending environment in automotive, and the shift in electric vehicle introductions and ramps impacting its bookings and revenue forecasts more than management previously anticipated.

While we believe the company continues to have an opportunity in the longer term to drive growth, primarily with the expansion of silicon carbide for EVs, with the current level of uncertainties we are downgrading shares to a Hold and lowering our price target to $12. Our price target is based on 25x our FY25 EPS estimate of $0.48."

For an analyst ratings summary and ratings history on Aehr Test Systems click here. For more ratings news on Aehr Test Systems click here.

Shares of Aehr Test Systems closed at $11.37 yesterday.

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