Needham & Company Reiterates a 'Buy' on Power Integrations (POWI); High Profile Samsung A19 Light Bulb Design Win

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

Needham analyst says, "In a teardown analysis of a small sampling of residential LED light bulbs we discovered that POWI has a critical design win in Samsung's (N/R) recently introduced A19 incandescent replacement bulb. We ran a subjective test on this Samsung bulb against the competitive offerings and it was in our view the best performing while also being lowest priced offering. Referring to our report published on December 9th, we still believe that POWI has 20-25% share of the LED general lighting market, further fortified by this new design win, and are now more confident that POWI can meet our $100M revenue target for LED lighting in 2015 in a potential $1.5B market. While we are excited about this design win and believe it will offer a much needed sentiment boost to the POWI story, LED is projected to be only 7-8% of revenue in 2011 and 10% in 2012 by our estimate. We believe the rest of the revenue mix remains challenged, much as the rest of the semi industry to the whims of channel inventory, but the GM overhang is improving as we have discussed in the past."

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 $33.39 yesterday.

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