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On May 4, Morgan Stanley raised its price target on chip maker Navitas Semiconductor (NVTS) to $12.50 from $4.50. The price target increase came in the wake of the company's strong fourth-quarter results that were reported in February. But, although NVTS on May 5 unveiled Q1 results that were favorable in some respects, and it has several strong, potential, powerful, positive catalysts, the shares are changing hands at an extremely high valuation. Further, the company is still generating very little revenue and could be vulnerable to intensifying competition going forward.
Additionally, the name is trading far above Morgan Stanley's new price target, and the investment bank kept an “Underweight” rating on the shares.
