Navitas gets price target cut at Bofa amid fears of semiconductor downturns
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Navitas Semiconductor (NASDAQ:NVTS) stock fell ~4% on June 29, which also saw Bank of America cut its price target on the shares to $5 from $7 but maintained a Neutral rating, amid fears of semiconductor downturns.
Bofa also downgraded semiconductor-related stocks Skyworks Solutions (SWKS) and Qorvo (QRVO) to Underperform from Neutral and Teradyne (TER) and Texas Instruments (TXN) to Neutral from Buy.
BofA analyst Vivek Arya said that semiconductor downturns happen every three-to-four years, and the market could witness one.
The analyst added that due to tightening global monetary policy, geopolitical tumult and consumer weakness could put pressure on chip demand in H2 2022 and next year. But noted that unit weakness could be shielded by better non-consumer mix, vigorous pricing, an expanding content, and constrained supply.
The chart below shows YTD price-return performance of NVTS, Skyworks, Qorvo, Teradyne and Texas Instruments, against SP500TR:

The analyst cut the firm's 2022 semiconductor sales outlook to $608B and 2023 outlook to $604B.