Needham & Company Maintains a 'Buy' on AXT, Inc. (AXTI); Weak Outlook Due to Share Loss and Inventory Work-down

Needham & Company maintains a 'Buy' on AXT, Inc. (NASDAQ: AXTI) price target lowered from $9 to $7.

Needham analyst says, "AXTI 3Q11 earnings beat consensus estimates despite a revenue miss, but guidance was substantially below expectations. As a substrate supplier at the upper stream of the value chain, customer inventory work-downs have a large impact on AXTI’s business. Additionally, we believe competitors are winning share against AXTI by offering very aggressive pricing. While these negative trends could extend beyond the current quarter, we believe AXTI’s better cost structure will enable the company to win business back. We continue to believe AXTI will participate in the long-term unit growth in mobile, LED, fiber optics and solar...Based on weaker guidance, we lower our 2011 EPS estimate to $0.63 and 2012 to $0.57."

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 $5.92 yesterday.

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