Needham & Company Reiterates a 'Buy' on Power Integrations (POWI); Revisiting the Story with Emphasis on LED

Needham & Company reiterates a 'Buy' on Power Integrations (NASDAQ: POWI) price target of $40.00.

Needham analyst says, "We recently caught up with the management of POWI to discuss the tone of business as well as its progress on the gross margin front. We are pleased to report that there are no changes to what was outlined on the Q3 earnings call and guide, and would point out that management was upbeat yet cautious about the macro-environment. At our insistence, given the recent industry buzz and conjecture around new LED general lighting opportunities, we revisited this small, yet rapidly growing, piece of POWI's revenue. We also touched upon the infantile, yet strategically important efforts to migrate up the power curve into high power. We offer investors a quick snapshot of the LED market opportunity for the silicon side of the equation as we are increasingly convinced that 2012 will mark an inflection in demand for LED bulbs and investor enthusiasm. While it could very well be another example of us crying wolf, we are excited to hear that Samsung (N/R) will be shipping its new solutions into the US retail channel by year-end and consider this a "new beginning" for the residential market."

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 $35.56 yesterday.

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