DA Davidson Starts AXT, Inc. (AXTI) at Neutral; Leading Wafer Supplier for Niche High-Growth End Markets

DA Davidson initiates coverage on AXT, Inc. (NASDAQ: AXTI) with a Neutral. PT $7.00.

DA analyst said, "AXT, Inc. is a leading supplier of high-performance compound and single element semiconductor substrates (wafers), such as semi-insulating and semi-conducting gallium arsenide (GaAs), indium phosphide (InP) and germanium (Ge). These substrates have seen strong adoption in high-growth markets such as wireless communications, light emitting diodes (LEDs), opto-electronics and photovoltaics...In the 2004-2005 timeframe, AXTI experienced a major market share loss due to quality issues as a result of migration of manufacturing to China. Since then, AXT has worked diligently to grow market share in its key GaAs business (71% of total CY10 revenue) from ~7% in CY05 to ~22% in CY10."

"While we see strong long-term growth in the company’s key wireless and LED based applications, we would wait for some clarity on the near-term issues before getting into the stock."

For more ratings news on AXT, Inc. click here and for the rating history of AXT, Inc. click here.

Shares of AXT, Inc. closed at $6.83 yesterday.

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