London-listed semiconductor company Alphawave Semi 's stock is set to double over the next 12 months, according to Jefferies. The investment bank has set a price target of £2.70 on Alphawave's shares, which implies an upside of 112% from the current level. Stocks listed in the U.K. are typically priced in pence. The bullish view comes despite Jefferies noting Alphawave's "disappointing" profit margins and negative free cash flow in the first half of 2023.
"We estimate that some of Alphawave's strongest hyperscaler engagements are with AWS and Microsoft ," said Jefferies analysts led by Janardan Menon in a note to clients on Sept. 26. "We expect bookings to remain strong in [second half of 2024] and beyond, helping drive the company's growth to its medium-term targets of $500m of revenue at an [adjust profit] margin of 30% in 2025.