Needham & Company Reiterates Buy, but Lowers PT on Power Integrations (POWI)
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Price: $43.94 -0.23%
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
3 Buy, 6 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade POWI Now!
Following mixed quarterly results, Needham & Company reiterated a Buy rating on Power Integrations (NASDAQ: POWI) but lowered their price target to $42.00 (from $48.00).
"The Q3 guide of 5% Q/Q revenue growth was above par for the industry but is about 10% below consensus," said Vernon Essi Jr, an analyst with Needham & Company.
"The addition of high power CONCEPT provided an expected thrust to Industrial but added amortization charges that will extend into 2013. This was lost in the shadow of an IRS settlement that will materially lower POWI’s tax rate (to ~9% in 2013 from our 18% estimate) at the cost of an upfront charge in Q2 of $15.7M," added Essi.
"Like most of its peers, POWI saw bookings drop in June and within its segment reporting the Q/Q highlight was Industrial. GM improvements also occurred with about 1/3 due to the cost initiatives previously outlined and the remainder due to strong mix from CONCEPT."
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 $37.30 yesterday, with a 52 week range of $28.83-$44.62.
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"The Q3 guide of 5% Q/Q revenue growth was above par for the industry but is about 10% below consensus," said Vernon Essi Jr, an analyst with Needham & Company.
"The addition of high power CONCEPT provided an expected thrust to Industrial but added amortization charges that will extend into 2013. This was lost in the shadow of an IRS settlement that will materially lower POWI’s tax rate (to ~9% in 2013 from our 18% estimate) at the cost of an upfront charge in Q2 of $15.7M," added Essi.
"Like most of its peers, POWI saw bookings drop in June and within its segment reporting the Q/Q highlight was Industrial. GM improvements also occurred with about 1/3 due to the cost initiatives previously outlined and the remainder due to strong mix from CONCEPT."
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 $37.30 yesterday, with a 52 week range of $28.83-$44.62.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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