In a report released today, Gus Richard from Northland Securities maintained a Hold rating on Power Integrations (POWI), with a price target of $52. The company’s shares closed yesterday at $78.01, close to its 52-week high of $81.37.
Richard commented:
“We maintain our MP. Quater: POWI reported non-GAAP EPS of $0.41 on $89.2M versus our estimate of $0.42 on $90.1M. While revenue was effectively in line with our estimates, revenue mix was not. Industrial revenue was $5.3M below our estimate at $33.9M. An increasing mix of government infrastructure projects is causing Q1 industrial revenue to be weaker seasonally versus prior years. Consumer revenue of $34.2M was up $6.2M above our model and increased 10% Q/Q. Seasonal strength in air conditioners and inventory replenishment drove the recover. For the year we are modeling consumer revenue to be down 6% versus our prior estimate of down 18%. POWI is less confident in a rebound in consumer revenue and believes it will be closer to flat y/y. Gross margin was 51.3%, 70 bps below our model. A weak margin revenue mix likely accounts for the delta.”
According to TipRanks.com, Richard is a top 100 analyst with an average return of 25.7% and a 72.5% success rate. Richard covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Akoustis Technologies, and PDF Solutions.
The word on The Street in general, suggests a Hold analyst consensus rating for Power Integrations with a $61.33 average price target, which is a -21.4% downside from current levels. In a report issued on April 22, Deutsche Bank also maintained a Hold rating on the stock with a $70 price target.
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Power Integrations’ market cap is currently $2.25B and has a P/E ratio of 33.53. The company has a Price to Book ratio of 4.28.
Based on the recent corporate insider activity of 99 insiders, corporate insider sentiment is negative on the stock. Most recently, in February 2019, Alan Bickell, a Director at POWI sold 1,666 shares for a total of $118,469.
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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.
