Analyst Tristan Gerra of Robert W. Baird maintained a Hold rating on Diodes (DIOD – Research Report), with a price target of $72.00.
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Tristan Gerra has given his Hold rating due to a combination of factors affecting Diodes’ current market position. The company is experiencing a gradual recovery in Asia, particularly in China and Southeast Asia, but the demand in Europe and North America remains weak. Despite some progress in reducing inventory levels, challenges persist, with inventory digestion expected to continue into the first quarter for the automotive sector and into the second quarter for the industrial sector.
Furthermore, while Diodes has released a significant number of new products and expanded its total addressable market in both automotive and AI server segments, these positive developments are counterbalanced by ongoing demand fluctuations. The company’s financial performance in the fourth quarter of 2024 showed mixed results, with revenue slightly exceeding guidance but earnings per share falling short of expectations. This mixed performance, along with the anticipated benefits from the manufacturing transition at the South Portland facility, supports a cautious outlook, leading to the Hold rating.
In another report released today, Truist Financial also maintained a Hold rating on the stock with a $53.00 price target.