The semiconductor industry is bracing for a significant shift as Needham maintains its ‘Buy’ recommendation for Ichor Holdings (NASDAQ:ICHR), a leader in the design, engineering, and manufacturing of fluid delivery subsystems and components for semiconductor capital equipment. As reported by Fintel on August 25, 2023, the average one-year price target for Ichor Holdings is 39.27, representing a promising 16.25% increase from its latest reported closing price. The projected annual revenue for the company also stands at an impressive 1,118MM, marking an increase of 4.66%.

The fund sentiment towards Ichor Holdings is predominantly bullish, with 400 funds or institutions reporting positions in the company. Despite a minor decrease of 1.48% in ownership over the last quarter, the average portfolio weight dedicated to ICHR has increased by 4.82%. Furthermore, a significant increase in total shares owned by institutions indicates a strong market confidence in the company’s potential. Several prominent shareholders, including the iShares Core S&P Small-Cap ETF, Fidelity Small Cap Discovery Fund, and Macquarie Group, have adjusted their portfolio allocations in ICHR over the last quarter, further underscoring the company’s robust standing in the semiconductor industry.

Needham Maintains Coverage of Ichor Holdings with a Buy Recommendation

According to a report by Fintel on August 25, 2023, Needham has maintained coverage of Ichor Holdings (NASDAQ:ICHR) with a Buy recommendation.

Analyst Price Forecast Suggests Upside

As of August 2, 2023, the average one-year price target for Ichor Holdings is 39.27, with forecasts ranging from a low of 33.33 to a high of $46.20. This average price target represents an increase of 16.25% from its latest reported closing price of 33.78. The projected annual revenue for Ichor Holdings is 1,118MM, indicating an increase of 4.66%. The projected annual non-GAAP EPS is 2.37.

Positive Fund Sentiment

The report reveals that there are 400 funds or institutions reporting positions in Ichor Holdings. This represents a decrease of 6 owners or 1.48% in the last quarter. However, the average portfolio weight of all funds dedicated to ICHR has increased by 4.82% to 0.13%. Furthermore, total shares owned by institutions have increased by 4.12% to 31,675K shares in the last three months. The put/call ratio of ICHR is 0.19, suggesting a bullish outlook.

Portfolio Adjustments among Shareholders

Major shareholders have made adjustments in their portfolio allocation in ICHR. iShares Core S&P Small-Cap ETF has decreased its shares by 3.32%, but increased its portfolio allocation by 7.36% over the last quarter. Fidelity Small Cap Discovery Fund and Macquarie Group have increased their shares by 1.71% and 1.84% respectively, while Alliancebernstein and Invesco have decreased their shares by 14.08% and 23.38% respectively.

About Ichor Holdings

Ichor Holdings is a leading company in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment. It offers gas and chemical delivery subsystems which are key elements of the process tools used in the manufacturing of semiconductor devices. It is headquartered in Fremont, CA.

My Takeaways

The coverage maintained by Needham and the potential upside of 16.25% presents an optimistic outlook for Ichor Holdings. Despite a slight decrease in the number of owners, the overall increase in portfolio weight dedicated to ICHR and the increase in total shares owned by institutions indicate a positive sentiment towards the company. However, the varying adjustments in portfolio allocations among major shareholders suggest a mixed response towards the company’s prospects. As a leader in its field, Ichor Holdings continues to hold significant potential for growth in the burgeoning semiconductor industry.