Needham & Company analyst N. Quinn Bolton lowered the price target on Ichor Holdings (NASDAQ: ICHR) to $40.00 (from $43.00) while maintaining a Buy rating.

The analyst commented, "Ichor reported 4Q19 results in-line and guided 1Q20 revenue up ~3% from its January pre-announcement. ICHR's 2020 WFE outlook aligns with that of Lam Research (LRCX, Buy). The company expects 2020 to be a front-end loaded, DD growth year for WFE. ICHR also announced OpEx will increase from 2019's ~$12MM/qtr to ~$14MM/qtr to fund multiple growth initiatives. Following the strong 1H20, we expect 2H20 modulation of WFE to pressure ICHR's GM expansion trajectory and the OpEx hike to moderate EPS growth relative to our prior model. Our 2020 EPS estimate is largely unchanged as the revenue tailwind and margin headwind cancel each other. However, as we are not raising our 2021 revenue estimate, our 2021 EPS estimate has to be trimmed. As such, we reduce our PT from $43 to $40 based on 13x our revised CY21 NG EPS estimate (ex. SBC) for ICHR."