UBS Maintains a 'Neutral' on Diodes (DIOD); Outlook Lowered on Persistent Softness
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Price: $103.48 +6.47%
Rating Summary:
9 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 7 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on Diodes (NASDAQ: DIOD) price target lowered by $2 to $20.
UBS analyst says, "We expect Diodes’ design win pipeline, growing exposure to Asia consumers, and new standard logic products to help the company outperform peers on a relative basis and gain further share in discrete and standard analog. However, we believe the soft macro and rising manufacturing costs will continue to weigh on sentiment for the name. In addition to labor costs, Diodes’ ability to quickly move to copper from gold as a key chip packaging material will influence forward margin trends."
"Our Q3 sales forecast is unchanged at $163m but GAAP EPS declines to $0.26 from $0.32 on lower gross margin view and partly offset by reduced tax rate. We also reduce our Q4 gross margin forecast and leads to C11 EPS declining -9% to $1.39. C11 sales are unchanged at $661m. C12 sales remain at $695m but we trim 1H gross margins, resulting in EPS declining - 4% to $1.59."
For more ratings news on Diodes click here and for the rating history of Diodes click here.
Shares of Diodes closed at $18.25 yesterday.
UBS analyst says, "We expect Diodes’ design win pipeline, growing exposure to Asia consumers, and new standard logic products to help the company outperform peers on a relative basis and gain further share in discrete and standard analog. However, we believe the soft macro and rising manufacturing costs will continue to weigh on sentiment for the name. In addition to labor costs, Diodes’ ability to quickly move to copper from gold as a key chip packaging material will influence forward margin trends."
"Our Q3 sales forecast is unchanged at $163m but GAAP EPS declines to $0.26 from $0.32 on lower gross margin view and partly offset by reduced tax rate. We also reduce our Q4 gross margin forecast and leads to C11 EPS declining -9% to $1.39. C11 sales are unchanged at $661m. C12 sales remain at $695m but we trim 1H gross margins, resulting in EPS declining - 4% to $1.59."
For more ratings news on Diodes click here and for the rating history of Diodes click here.
Shares of Diodes closed at $18.25 yesterday.
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