Recent data reveals notable changes in the indicative borrow rates among a selection of actively traded options. Canadian Solar (CSIQ) stands out with a significant gain, as its borrow rate surged to 18.63%, marking an increase of 3.21%. This positions Canadian Solar prominently among its peers in terms of rate escalation.
Other companies and ETFs also experienced marked shifts in their borrowing costs. Aehr Test Systems (AEHR, Financial) saw its rate increase to 8.91%, reflecting a rise of 1.04%. Meanwhile, the Euro ETF (FXE) reported a rate of 10.68%, climbing 0.94%.
Galectin Therapeutics (GALT) demonstrated a substantial jump in borrow rate to 45.46%, with an increase of 0.74%. MicroCloud Hologram Inc (HOLO) followed with a rate of 28.94%, up by 0.58%, while Microvision (MVIS) reached 38.73%, growing by 0.54%.
Gorilla Technology Group Inc (GRRR) and Enovix (ENVX) also show notable increases, with their rates reaching 45.13% and 1.85%, respectively. Gorilla Technology Group’s rate grew by 0.48% and Enovix by 0.44%.
The iShares China Large Cap ETF (FXI) saw its rate rise to 1.18%, a 0.43% increase. Lastly, Lightbridge (LTBR) reported a rate of 4.83%, marking an increase of 0.40%.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Aehr Test Systems (AEHR, Financial) is $11.50 with a high estimate of $11.50 and a low estimate of $11.50. The average target implies an upside of 32.34% from the current price of $8.69. More detailed estimate data can be found on the Aehr Test Systems (AEHR) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Aehr Test Systems's (AEHR, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Aehr Test Systems (AEHR, Financial) in one year is $19.21, suggesting a upside of 121.06% from the current price of $8.69. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Aehr Test Systems (AEHR) Summary page.
AEHR Key Business Developments
Release Date: April 08, 2025
- Revenue: $18.3 million, a 142% increase compared to $7.6 million in Q3 last year.
- Gross Margin: 42.7%, compared to 42.5% in the same period last year.
- Net Income: Non-GAAP net income of $2.0 million or $0.07 per diluted share, compared to a non-GAAP net loss of $888,000 or negative $0.03 per diluted share in Q3 fiscal 2024.
- Bookings: $24.1 million in the third quarter of fiscal 2025.
- Backlog: $18.2 million at the end of the quarter, with an effective backlog of $21.8 million after additional bookings.
- Cash and Cash Equivalents: $31.4 million at the end of Q3, down from $35.2 million at the end of Q2.
- Operating Expenses: Non-GAAP operating expenses were $6.3 million, a 34% increase from $4.7 million in Q3 last year.
- Interest Income: $270,000 earned in the third quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Aehr Test Systems (AEHR, Financial) reported significant revenue growth, exceeding analyst expectations for both revenue and bottom line for the third quarter.
- The company has successfully diversified its revenue streams, reducing reliance on silicon carbide, which accounted for over 90% of business in fiscal 2024, to less than 40% this year.
- Aehr Test Systems (AEHR) has expanded into high-growth markets such as AI processors, gallium nitride semiconductors, and hard disk drive components.
- The company has made significant progress in developing new products, including the world's first wafer-level burn-in systems specifically designed for AI processors.
- Aehr Test Systems (AEHR) has a robust supply chain strategy to mitigate potential impacts from tariffs, including redirecting materials and utilizing international locations for assembly and testing.
Negative Points
- The company is facing uncertainty due to recent U.S. tariff announcements, which could lead to potential delays or pauses in customer orders and supply chain disruptions.
- Aehr Test Systems (AEHR) has temporarily withdrawn its guidance for the current fiscal year due to the uncertainty surrounding tariffs and their secondary effects.
- The company experienced a lower-than-expected gross margin due to onetime charges related to inventory accounting adjustments and high manufacturing overhead.
- There are concerns about potential legal expenses in upcoming quarters as Aehr Test Systems (AEHR) seeks to protect its intellectual property rights in China and defend against class action and derivative complaints in the U.S.
- The integration of the InCal acquisition is ongoing, with plans to shut down the InCal facility by the first quarter of fiscal 2026, which may involve additional costs and operational adjustments.
