Why SkyWater (SKYT) Shares Are Trading Higher Today - SkyWater Technology (NASDAQ:SKYT)

Needham analyst Ravindra Gill reiterated a Buy on SkyWater Technology, Inc SKYT and raised the price target to $20 from $15.
SkyWater reported 2Q22 revenues over the mid-$40 million level, reaching a significant breakeven point, he said in a note titled "Revenue Is Now Over Breakeven Point Translating to Operating Leverage."
He expected gross margins to improve through 2023 as inflation abates.
SkyWater expects the ATS segment to account for 2/3 of revenue next quarter and targets a similar segment mix over the medium term, he highlighted.
He saw SKYT as a strong play on advanced domestic semiconductor manufacturing for crucial technologies like quantum computing, photonics, carbon nanotubes, power management, biomedical and MEMS devices.
The benefits of the CHIPS Act are essentially a free call option, as he contemplated no incremental revenue or CapEx subsidies in the long-term growth rate of 25%.
He raised the price target on a blended methodology off his FY23 estimates.
Price Action: SKYT shares traded higher by 32.70% at $18.91 on the last check Tuesday.

Momentum23.56

Growth32.76

QualityNot Available

Value45.43

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SkyWater Price Target Bumped By 33.3% As Q2 Revenue Reaches Significant Breakeven Point Leading To Operating Leverage