Rosenblatt upgraded Navitas Semiconductor (NASDAQ: NVTS) to Buy from Neutral on Wednesday and set a $13 price target. Against a share price of $8.56, the target represents roughly 52% upside. Analyst price targets cited in the report ranged from $8 to $21, with consensus implying 68% upside.
The firm said Navitas beat estimates as its high-power strategy reached an inflection point. It pointed to accelerating growth, a book-to-bill ratio well above 1.0 and a backlog extending into mid-2027. Revenue from lower-value mobile and consumer markets is expected to approach zero as the company enters 2027.
Rosenblatt said demand for more efficient power systems across several markets, particularly data centers, is driving adoption of silicon carbide (SiC) and gallium nitride (GaN) components. It also described Navitas’ acquisition of Claros as timely, saying the deal could help the company address emerging power-management needs for AI processors with integrated voltage regulator technology.
The firm expects design wins in 2026 and 2027 to accelerate revenue growth in 2028 and 2029 and support gross-margin expansion. Rosenblatt also said Navitas shares have fallen about 70% since June, while the stock was down 46% over the previous six months, and described current levels as an attractive entry point given high-power demand and the company’s product positioning.
Navitas recently reported third-quarter revenue of $13.99 million, up 38% year over year and 33% from the prior quarter, exceeding the $13.5 million consensus estimate. Its loss of $0.14 per share was wider than analysts’ expected loss of $0.04. The results marked the company’s first year-over-year revenue increase since 2024.
Sources: Investing.com News.