Jefferies has initiated coverage on Aehr Test Systems with a Buy rating and a price target of $175. The company's stock, currently trading at $123.30, has surged over 550% in the past year. Aehr Test Systems has transformed its revenue stream, with AI now representing over 90% of its fiscal year 2026 revenue, up from less than 10% in fiscal year 2024.
Revenue Growth
Jefferies forecasts a 52% fiscal year 2025 through fiscal year 2028 revenue compound annual growth rate and gross margin recovering to 45% by fiscal year 2028. The firm views Aehr Test Systems as the only vendor offering both wafer- and package-level burn-in qualified into AI production.
Market Trends
Aehr Test Systems has seen significant growth, with record quarterly bookings of $60.7 million and an effective backlog above $100 million. The company has also secured a $22 million follow-on production order from its primary wafer-level AI processor customer for burn-in systems.
Analyst Upgrades
Freedom Broker recently upgraded Aehr Test Systems' stock rating to Buy from Hold, raising its price target to $110 from $90. This upgrade followed the company's fiscal 2026 results and its guidance for fiscal 2027 revenue, projected to be between $130 million and $150 million.
