BOCOM International Raises AXERA (00600) Price Target to HK$37, Keeps Buy Rating

Stock News10-22

According to Zhitong Finance APP, BOCOM International has released a research report raising its price target for AXERA (00600) to HK$37 while maintaining a "Buy" rating.

The brokerage stated that, considering the edge-side AI new product AX8860 may further drive overall revenue growth, and given the company's close cooperation with wafer foundries, which is expected to secure product supply amid tight overall foundry capacity, it has raised its revenue forecasts for the company for 2026 to 2028 to RMB 970 million, RMB 1.95 billion, and RMB 3.73 billion.

The brokerage expects gross margins across various product categories to remain relatively stable, and taking into account changes in the overall product mix, it has adjusted its gross margin forecasts for the company for 2026 to 2028 to 33.8%, 39.9%, and 42.8%.

The brokerage maintains its forecast that the company will turn EBITDA positive in 2027 and achieve profitability in 2028. BOCOM International noted that AXERA unveiled new edge AI products at this year's Shanghai Industrial Expo, positioning itself to capture opportunities in the edge and edge-side AI markets.

In addition, the company's intelligent driving chip business is progressing smoothly, and its edge-side computing business performance may also exceed previous expectations.

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