Needham & Company Maintains a 'Buy' on Power Integrations (POWI); Adjusting Estimates on Shallow Sloped Recovery
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Price: $44.91 +0.25%
Rating Summary:
3 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 24
Rating Summary:
3 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 24 | New: 24
Trade POWI Now!
Needham & Company maintains a 'Buy' on Power Integrations (NASDAQ: POWI) price target of $43.00.
Analyst, Vernon Essi, Jr., said, "Late last year investors were pleased to hear reports that semis had “hit bottom” and that order rates would resume. This bottom seems to have dragged on for some time, but recently orders have started to improve, albeit at depressed levels. Thus companies in our Analog/Mixed Signal coverage appear to be having a “Spruce Goose” recovery that has barely any lift. While we don’t anticipate order declines, we do expect Q1 to have the same reaction to our moniker – one of skepticism and likely profit-taking in the group heading into the Q1 earnings season. Our visits with A/MS companies and specifically POWI this week reinforced our view that POWI will be subject to this muted recovery into Q2, and we are consequently lowering our estimates. We remain constructive on POWI’s long-term strategy, however, and its revenue growth augmented by high power and LED lighting."
"We reduced our Q1 revenue from $68M to $65M which is still within the $64-70M guidance range, and we reduced our Q2 revenue from $78M to $73M. This resulted in a reduction of our 2012E revenue/EPS from $311M/$1.70 to $303M/$1.60. We did, however, leave 2013 revenue/EPS unchanged at $339M/$2.00."
For an analyst ratings summary and ratings history on Power Integrations click here. For more ratings news on Power Integrations click here.
Shares of Power Integrations closed at $38.01 yesterday, with a 52 week range of $28.83-$40.86.
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Analyst, Vernon Essi, Jr., said, "Late last year investors were pleased to hear reports that semis had “hit bottom” and that order rates would resume. This bottom seems to have dragged on for some time, but recently orders have started to improve, albeit at depressed levels. Thus companies in our Analog/Mixed Signal coverage appear to be having a “Spruce Goose” recovery that has barely any lift. While we don’t anticipate order declines, we do expect Q1 to have the same reaction to our moniker – one of skepticism and likely profit-taking in the group heading into the Q1 earnings season. Our visits with A/MS companies and specifically POWI this week reinforced our view that POWI will be subject to this muted recovery into Q2, and we are consequently lowering our estimates. We remain constructive on POWI’s long-term strategy, however, and its revenue growth augmented by high power and LED lighting."
"We reduced our Q1 revenue from $68M to $65M which is still within the $64-70M guidance range, and we reduced our Q2 revenue from $78M to $73M. This resulted in a reduction of our 2012E revenue/EPS from $311M/$1.70 to $303M/$1.60. We did, however, leave 2013 revenue/EPS unchanged at $339M/$2.00."
For an analyst ratings summary and ratings history on Power Integrations click here. For more ratings news on Power Integrations click here.
Shares of Power Integrations closed at $38.01 yesterday, with a 52 week range of $28.83-$40.86.
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