Analyst Positive on Diodes' (DIOD) Acquisition of BCD Semiconductor (BCDS)
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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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Yesterday Diodes (NASDAQ: DIOD) announced it would acquire BCD Semiconductor (NASDAQ: BCDS) for $151 million.
Commenting on developments, analyst Gary Mobley of Benchmark said, "We view this acquisition quite favorably for several reasons. First of all, the deal could be ~$0.20 immediately accretive annually to Diodes. Second, the marriage combines BCD's extensive frontend manufacturing capabilities with Diodes' extensive back-end capabilities. Third, BCD increases Diodes' analog product mix from ~20% to ~35%, and with the increased mix of higher margin product, Diodes should experience a ~50-100bp boost to overall gross margin."
Benchmark maintained a Buy rating on Diodes (NASDAQ: DIOD) and increased its price target to $25.00 (from $20.00).
For an analyst ratings summary and ratings history on Diodes click here. For more ratings news on Diodes click here.
Shares of Diodes closed at $16.91 yesterday.
Commenting on developments, analyst Gary Mobley of Benchmark said, "We view this acquisition quite favorably for several reasons. First of all, the deal could be ~$0.20 immediately accretive annually to Diodes. Second, the marriage combines BCD's extensive frontend manufacturing capabilities with Diodes' extensive back-end capabilities. Third, BCD increases Diodes' analog product mix from ~20% to ~35%, and with the increased mix of higher margin product, Diodes should experience a ~50-100bp boost to overall gross margin."
Benchmark maintained a Buy rating on Diodes (NASDAQ: DIOD) and increased its price target to $25.00 (from $20.00).
For an analyst ratings summary and ratings history on Diodes click here. For more ratings news on Diodes click here.
Shares of Diodes closed at $16.91 yesterday.
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