Power Integrations Slips; Deutsche Bank Downgrades To Hold
Power Integrations (POWI) shares are trading lower after Deutsche Bank analyst Ross Seymore this morning cut his rating on the chip maker’s shares to Hold from Buy on a valuation basis.
“While we remain positive on POWI’s near-term fundamentals, and long-term growth prospects, we believe these positive attributes are fairly reflected in the company’s current valuation,” he writes. Seymore keeps his price target at $40; the stock closed last week at $41.36.
Meanwhile, the market is largely ignoring a more bullish note on the company from Needham analyst Vernon Essi, who repeated his Buy rating on the stock this morning, while lifting his price target to $46, from $30. “We continue to believe that POWI is taking share in energy efficiency design implementations and the overall market is on a significant uptrend,” he writes. “And while the shares have performed well over the past couple of months along with the rest of the sector, we believe that P/E expansion is warranted.”
POWI is down $1.02, or 2.5%, to $40.34.
