What happened
Shares of Irish semiconductor stock Navitas Semiconductor Corporation (NVTS 0.76%) soared in early trading Monday, rising 15.3% through 10 a.m. EST after investment bank Jefferies initiated coverage of the stock with a buy rating.
Navitas manufactures gallium nitride integrated circuits used to fast-charge smartphones, laptops, and similar electronic devices.
Image source: Getty Images.
So what
Navitas, you see, is not just a semiconductor play, but a pure-play ESG investment for investors concerned about environmental, social, and governance issues, argues Jefferies today in its note covered by StreetInsider.com.
As the analyst explains, Navitas' "low-cost GaN-on-Si power solutions for charging applications ... charge 3x faster and 40% more efficiently than existing Si technology." That should make them not just more attractive to consumers, but better for the environment as well because they're not wasting as much power as other charging devices.
Now what
At least, that's what should happen in theory. In practice, Navitas hasn't actually generated any revenue from its offerings yet, but has racked up $6.3 million in losses over the last nine months, according to Securities and Exchange Commission filings.
Nevertheless, Jefferies thinks the company will have a total addressable market of as much as $500 million in sales by 2024, and is forecasting 140% compound annual revenue growth over the next two years.
Jefferies seems to think that makes Navitas stock worth about $24 a share.
