Ichor Holdings Shows No Signs of Slowing Down Post-IPO

Shares of Ichor Holdings Ltd (NASDAQ:ICHR) are edging slightly higher this afternoon, currently up 60 cents to $14.00 at the time of writing – a 4.5 percent jump. The boost arrived on the heels of the company releasing upbeat preliminary sales data from its fiscal fourth-quarter and full-year 2016.

About 445,000 shares of Ichor have changed hands today, nearly double the thinly-traded stock’s average volume of about 265,000 shares per day.

The newly public company, which makes gas and chemical delivery systems for microchip process equipment, told shareholders after the market close yesterday that it expects its net sales for the fourth quarter to be reported at $131 million.

For the fiscal year, Ichor said its revenue will be posted at about $405 million. The company also told investors that it anticipates its net sales during the first quarter of fiscal 2017 to be higher than in the fourth quarter.

The company will hold a conference call with investors to go over its fiscal 2016 performance and business outlook – which will take place on February 9, 2017 at 9:30 a.m. Ichor will put out a press release before the market open that same day.

Following the company’s preliminary financial results being made public, Deutsche Bank reaffirmed a “Buy” rating on the company’s common stock. The firm also lifted its 12-month price target from $38.00 to $42.00.

“ICHR’s updated 4Q guidance and positive 1Q outlook reinforce our view that the company is in good position to continue its revenue outperformance through share gains and SAM expansion, which in turn should drive operating leverage and EPS growth,” said Deutsche Bank analyst Sidney Ho. “As ICHR continues to demonstrate its ability to outgrow the market as a public company, we believe the valuation gap between ICHR and its closest competitor will continue to shrink.”

The company announced last week that it is participating at this week’s 19th Annual Needham Growth Conference – which is being held at the Lotte New York Palace Hotel in Manhattan until tomorrow.

Ichor went public just last month, pricing its initial public offering on December 9th, which consisted of 5,877,778 shares of its common stock for $9.00 a piece. Since then, the company’s share price has climbed $5.00 higher – a 55 percent increase.

Similarly, analysts at RBC Capital Markets lifted their price target on Ichor’s stock from $16.00 to $17.00 today. The firm currently has the stock rated as “Outperform.” Additionally, Stifel analyst Patrick Ho lifted his price target on the company stock from $16.00 to $17.00 – reaffirming a “Buy” rating.

The author has no positions in the above mentioned companies.

Tim is a contributing analyst for EconomicCalendar.com and specializes in equities trading and public offerings. He is a graduate of UCLA and began his career doing capital markets research for a top investment banking software provider.