Benchmark Co. analyst David Williams has reiterated their bullish stance on POWI stock, giving a Buy rating today.
David Williams has given his Buy rating due to a combination of factors including positive trends in order execution, improved inventory levels, and significant design win momentum. He believes that the expected recovery in the second half of the year is beginning to materialize, as evidenced by enhanced order trends in the second quarter and a balance between shipments and end-user demand. The company’s growth is currently being driven by channel restocking and anticipated product launches. Williams highlights Power Integrations’ success in the automotive sector, where its components are being used in numerous production platforms, with more expected in the coming years. He anticipates that Power Integrations will surpass its historical growth and earnings power in a more favorable demand environment.
Furthermore, the acquisition of Odyssey Semiconductor is set to boost Power Integrations’ roadmap in the GaN space, adding valuable facilities, expertise, and intellectual property. Williams remarks on the company’s gross margin remaining at the high end of the target range, benefiting from favorable product mix and exchange rates. He also notes the expansion of Power Integrations’ product portfolio with the introduction of the second generation InnoMux device family, which has already secured a design win. Overall, Williams’s confidence in the firm’s execution and strategic initiatives underpins his Buy rating for Power Integrations.
In another report released today, Susquehanna also reiterated a Buy rating on the stock with a $95.00 price target.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of POWI in relation to earlier this year.
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Power Integrations (POWI) Company Description:
Power Integrations, Inc. engages in the design, development and marketing of analog and mixed-signal integrated circuits and other electronic components and circuitry used in high voltage power conversion. Its products are used in power converters that convert electricity from a high-voltage source to the type of power required for a specified downstream use. The company was founded by Steven J. Sharp on March 25, 1988 and is headquartered in San Jose, CA.
