II-VI Incorporated shares slip on Morgan Stanley downgrade

August 15, 2022

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II-VI Incorporated stock ($NASDAQ:IIVI) slipped on Friday after investment firm Morgan Stanley downgraded the semiconductor equipment maker. The downgrade was based on the Coherent acquisition, which helps diversify II-VI’s business but also increases its risks in the near-term. Analyst Meta Marshall lowered his rating on II-VI Incorporated shares to equal weight from overweight and cut the price target to $59 from $75. He noted that the deal is expected to be dilutive in the “near term” though II-VI has said it will be breakeven in year But higher interest rates could be a challenge, given that II-VI has a large proportion of its debt at floating rates. Coherent also has a “large exposure” to the OLED market, which is “heavily tied to smartphone displays,” according to the analyst. It remains to be seen how this downgrade will affect II-VI Incorporated’s market and earnings in the long term.

Market Reaction

II-VI Incorporated opened at $52.0 and closed at $52.9, up by 0.8% from the previous closing price of 52.5.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on II-VI INCORPORATED are made simple by VI app. Based on VI Star Chart II-VI INCORPORATED has an intermediate health score of 6/10 with regard to its cashflows and debt, might be able to sustain future operations in times of crisis. II-VI INCORPORATED is classified as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. High growth companies are deemed more volatile as they attempt to grow faster. II-VI INCORPORATED is strong in growth, profitability, medium in asset and weak in dividend.


II-VI Incorporated (IIVI) shares slipped on Wednesday after Morgan Stanley downgraded the stock, citing concerns about the company’s exposure to the China market. Despite the downgrade, IIVI shares recovered some ground and were up 0.8% in afternoon trading on Thursday. The stock has been volatile in recent weeks, as investors have been concerned about the company’s exposure to the ongoing trade dispute between the U.S. and China. II-VI Incorporated is a leading provider of optical and laser components and materials. The company has significant operations in China, which has been a source of concern for investors as the trade dispute between the U.S. and China has escalated.

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