MRAM: Future High Reliability Margins Will Drive Upside Potential

Analysts have nudged their price target on Everspin Technologies slightly higher to approximately $10.50 per share, citing modest improvements in long term profit margin expectations and a marginally lower discount rate, even as fair value and growth assumptions remain essentially unchanged.

What's in the News

• Launched new high reliability PERSYST MRAM parts, the EM064LX HR and EM128LX HR, targeting aerospace, defense, automotive and high end industrial markets with AEC Q100 Grade 1 qualification and 10 year data retention at 125degC (Key Developments)
• Independent radiation testing at the Berkeley Accelerator Space Effects Facility under a NASA JPL program showed the EM064LX HR experienced no single event latch up events up to an LET of 61 MeV cm2/mg, reinforcing its suitability for space and other extreme environments (Key Developments)
• Introduced 64 and 128 megabit xSPI MRAM devices with up to 90 Mbytes/sec sustained read and write bandwidth over more than a decade, leveraging a QSPI interface to support data intensive, safety critical systems that cannot tolerate data loss (Key Developments)
• Issued fourth quarter 2025 guidance, projecting revenue of $14 million to $15 million and GAAP net income per diluted share between $0.02 and $0.07, indicating expectations for continued profitability (Key Developments)
• Announced a strategic collaboration with Quintauris to integrate Everspin MRAM into RISC V based platforms for automotive, industrial and edge applications, with the goal of enhancing reliability, functional safety and data integrity in safety driven markets (Key Developments)

Valuation Changes

• Fair Value Estimate remains unchanged at approximately $10.50 per share, indicating no material shift in intrinsic value assessment.
• The discount rate has fallen slightly from about 10.57 percent to 10.52 percent, reflecting a modestly lower perceived risk profile.
• Revenue growth is effectively unchanged at roughly 8.90 percent, suggesting stable expectations for top line expansion.
• The net profit margin has risen slightly from about 14.17 percent to 14.69 percent, pointing to modestly improved long term profitability assumptions.
• The future P/E multiple has declined slightly from approximately 36.15x to 34.81x, implying a marginally lower valuation multiple on forward earnings.