Needham & Company Reiterates a 'Buy' on Power Integrations (POWI); Effectively Controlling What it Can in This Slackened Demand Environment
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Price: $62.75 +0.71%
Rating Summary:
9 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company reiterates a 'Buy' on Power Integrations (NASDAQ: POWI) price target of $43.00
Needham analyst says, "This week we hosted POWI’s CFO and IR on client visits in the Midwest region. Management spent considerable time discussing its cost containments efforts on the GM front as well as new product investments in high power and responding to investor curiosity on the LED front. Though some of the discussion involved the demand side of the equation, trying to sort out consumption levels in late Q3 and into Q4 remains largely an educated guess at this point. Lead times remain very low at 4 weeks and there are only 4-6 weeks in channel inventory leaving nominal risk to the guide if the environment continues to soften. Highlights in high power include design wins with two major PC OEMs as well as a beachhead design win with a European LCDTV brand, which is likely to be a reference design for others going forward. There is $46M remaining in the share repurchase plan; POWI bought back roughly 15% of its shares in the downturn of 2008 and we would expect repurchases are occurring now with increases in the number of shares if the tape worsens. We see no reason to adjust our 6% and 11% growth for 2011 and 2012, respectively, and reiterate our $43 price target."
For more ratings news on Power Integrations click here and for the rating history of Power Integrations click here.
Shares of Power Integrations closed at $29.51 yesterday.
Needham analyst says, "This week we hosted POWI’s CFO and IR on client visits in the Midwest region. Management spent considerable time discussing its cost containments efforts on the GM front as well as new product investments in high power and responding to investor curiosity on the LED front. Though some of the discussion involved the demand side of the equation, trying to sort out consumption levels in late Q3 and into Q4 remains largely an educated guess at this point. Lead times remain very low at 4 weeks and there are only 4-6 weeks in channel inventory leaving nominal risk to the guide if the environment continues to soften. Highlights in high power include design wins with two major PC OEMs as well as a beachhead design win with a European LCDTV brand, which is likely to be a reference design for others going forward. There is $46M remaining in the share repurchase plan; POWI bought back roughly 15% of its shares in the downturn of 2008 and we would expect repurchases are occurring now with increases in the number of shares if the tape worsens. We see no reason to adjust our 6% and 11% growth for 2011 and 2012, respectively, and reiterate our $43 price target."
For more ratings news on Power Integrations click here and for the rating history of Power Integrations click here.
Shares of Power Integrations closed at $29.51 yesterday.
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