Northland Securities analyst Gus Richard maintained a Hold rating on Power Integrations (POWI) today and set a price target of $52. The company’s shares closed yesterday at $66.67.
Richard said:
“We believe that the high-power segment of the company’s business is the most immune from the current trade war as there are no reliable alternative to POWI products. We estimate that high power applications make up roughly $45M or 11% of revenue. In the cellphone market the Company expects to see strong growth driven by the adoption of the USB PD standard in cellphone chargers. The blacklisting of Huawei where POWI has relatively low exposure is expected to be offset by customers gaining share where POWI has a higher level exposure. We estimate cellphone chargers are $80M or 20% of the POWI revenue. The biggest swing factor is the company’s consumer appliance business. On the positive side, excess channel inventory appeared to be worked off as the Company saw a seasonal pick in demand in Q1.”
According to TipRanks.com, Richard is a 5-star analyst with an average return of 22.2% and a 63.9% success rate. Richard covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Quantenna Communications, and Akoustis Technologies.
Power Integrations has an analyst consensus of Hold, with a price target consensus of $70.20.
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Based on Power Integrations’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $7.23 million. In comparison, last year the company had a net profit of $14.2 million.
Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Floyd Kvamme, a Director at POWI bought 3,000 shares for a total of $72,630.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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 highvoltage 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.
