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MagnaChip price target lowered: Investors looking forward to Q3 results!
Roth Capital lowers its price target on MagnaChip to $4 but maintains a Buy rating after mixed Q3 results.
MagnaChip price target lowered: Investors looking forward to Q3 results!
In today's economic landscape, MagnaChip Semiconductor remains a hotly debated topic, especially after Roth Capital's recent price adjustment. As reported on November 4, 2025, Roth Capital lowered the price target on the company from $5 to $4 because its latest third-quarter results sent some mixed signals. Despite the adjustment, the stock's rating remains at Buy, suggesting analysts remain optimistic about its long-term outlook. The price target reduction comes after the release of third-quarter 2024 results, which revealed both light and dark.
In fact, MagnaChip saw strong growth in the standard products segment in the third quarter of 2024, with revenue jumping 24% year-over-year to a whopping $64 million. This is in line with the upper end of management's forecasts. Mixed-Signal Solutions (MSS) also enjoyed a remarkable increase, reaching 54.5% and thus achieving sales of USD 16.4 million. This can be attributed primarily to new design advances in premium smartphones and robust performance in the automotive sector.
Challenges and losses
Despite these positive numbers, the overall picture for MagnaChip remains bleak, as the company suffered an operating loss of $11 million and a net loss of $9.6 million over the same period. Cash and cash equivalents dwindled from $158.1 million at the end of 2023 to just $121.1 million in the third quarter of 2024, a decline of almost $37 million. This leads to the sobering realization that operating activities are not self-sustaining, as operating cash flow was negative at negative $12.9 million. Additionally, Transitional Fab 3 Foundry Services revenue fell 74.7% to just $2.4 million, underscoring the division's planned withdrawal by the end of 2024.
The current situation requires MagnaChip to have a good hand in navigating the challenges of the industry. The company plans to convert some of the foundry's unused capacity to Power Analog Solutions (PAS) in the second half of 2024, which provides hope for an improvement in earnings. Ultimately, it is important for the industry to drive innovation; MagnaChip has already begun sampling a new OLED driver that features the next generation of IP and enables over 20% power savings.