Why Photronics Stock Popped Another 7.4% Today
What happened
Photronics (NASDAQ: PLAB) investors are having a terrific week.
Yesterday, shares of the semiconductor-manufacturing equipment maker reported Q4 2019 sales that exceeded analyst estimates -- then followed that up with
So what
But if the earnings news is already one-day old, what was behind today's run-up?
It turns out that one analyst firm was so encouraged by Wednesday's earnings news that on Thursday morning, it raised its price target on Photronics stock. The analyst is DA Davidson, and today it raised its price target on Photronics stock by $2, to $18 a share -- prompting investors to follow suit and bid up Photronics past $16.
As the analyst explained in a note covered by TheFly.com today, Photronics is benefiting from ramping up production in China, which is driving sales growth -- now in its ninth consecutive quarter of growth.
Now what
Granted, profits are a bit more problematic -- net income was down more than 22% year over year in Q4 after a 52% drop in Q3. Analysts, however, forecast a
I guess this explains why investors are rushing to get back into Photronics stock this week.
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