Power Integrations (POWI) Mobile Product Pipline Looking Robust - Needham & Company

June 12, 2013 11:27 AM EDT
Get Alerts POWI Hot Sheet
Price: $70.30 +1.81%

Rating Summary:
    6 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 17 | New: 10
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Needham & Company raised estimates and its price target on Buy-rated Power Integrations (NASDAQ: POWI) from $47 to $50 Wednesday following a visit with management. The firm sees a new mobile charging product family from the company.

Analyst Vernon Essi, Jr. notes, "A visit with POWI management provided us insight into the company’s product pipeline and longer-term strategic growth initiatives. In our view, market demand for high power IGBTs, zero standby enabled consumer devices and LED lighting drivers with PFC are likely to be overshadowed by a renewed interest in next-generation mobility charger designs. We have previously termed these "mid-power" chargers for use primarily in tablets, but now the distinction between smartphone and tablet seems to be blurring, along with the charger designs. We believe a new product family is being developed by POWI that would be positioned between its LinkSwitch and TinySwitch offerings and fill in this newly required power requirement for mobility customers. These products would likely ramp in 2014 and we increase our revenue/EPS estimates from $362M/$2.40 to $370M/$2.55 to reflect this opportunity but keep our 2013 estimates unchanged at $337M/$2.12. We also raise our price target to $50 (from $47) and reiterate our Buy rating."

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 $40.29 yesterday.

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