Stifel lowered its price target for Ichor Holdings (NASDAQ: ICHR) to $93 from $115 and maintained its Buy rating. The revised target is within the reported analyst range of $80 to $115; the consensus rating is Strong Buy.
Ichor’s third-quarter revenue was slightly below the midpoint of its guidance, which the company attributed to continued component constraints. Gross margin rose to 16.0%, up 190 basis points from the previous quarter and above Stifel’s 15.0% estimate. Non-GAAP earnings per share also exceeded Stifel’s estimate and consensus, reaching the top end of the company’s guidance range.
The improvement in gross margin was driven by a higher share of sales from components, which carry higher margins. Component supply for external sales has increased 250% since the first quarter, while shipments of internally designed gas panels also remain important to the company’s margin plans.
The midpoint of Ichor’s fourth-quarter guidance implies 8% quarter-over-quarter growth, below Stifel’s previous estimate of 10%. Stifel said its expectations had been tempered after Lam Research gave guidance for 5% quarter-over-quarter growth, and described Ichor’s outlook as consistent with an environment that remains constrained.
Ichor expects gross margin to increase by 50 basis points in the fourth quarter. The company also forecast non-GAAP earnings per share above Stifel’s estimate and consensus, and said it plans to keep expanding capacity through additional tooling and labor to address what it described as robust demand and growth in 2027.
In its third-quarter 2026 results, Ichor reported earnings per share of $0.63, above the $0.45 Wall Street forecast cited in the source. Revenue was $328.7 million, slightly below the $330.11 million consensus estimate. Gross margin was 16%, while operating margin reached 8.6%.
Sources: Investing.com News.