Wedbush Morgan Downgrades Monolithic Power Systems (MPWR) to Buy

June 29, 2009 10:49 AM EDT

Wedbush Morgan downgrades Monolithic Power Systems (Nasdaq: MPWR) from Strong Buy to Buy. Price target raised from $21 to $25.

Wedbush analyst says, "We are downgrading shares of Monolithic Power to BUY and, after tripling in seven months, think shares need to take a breather before going materially higher. The stock has historically traded at a premium to peers (and rightfully so), but this valuation gap has expanded over the last two months due to a slew of positive data points and as investors flock to quality. We believe strong bookings activities will drive a significant beat to 2Q expectations, but think much of this upside is already reflected in shares today. Further, we think management conservatively guides 3Q, as healthy bookings are offset by economic uncertainty and an impaired visibility."

"We are raising our estimates to reflect the stronger than expected order trends during the quarter. As such, our 2Q revenue / EPS estimates go from $38.5mn (+31.3% QoQ)/$0.13 to $40.5mn (+38.2% QoQ)/$0.17. We have also increased our 2009 revenue/EPS estimates from $142.3mn (-11.3% YoY)/$0.47 to $151.4mn (-5.7% YoY)/$0.58, and 2010 estimates from $158.0mn/$0.90 to $170.6mn (+12.7% YoY)/$1.06."

To see more analyst ratings on MPWR Click Here.

Monolithic Power Systems, Inc. (MPS) designs, develops and markets analog and mixed-signal semiconductors.

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