Cautious Outlook on Vishay Intertechnology: Sell Rating Amid Margin Pressures and Market Challenges

Analyst Ruplu Bhattacharya of Bank of America Securities reiterated a Sell rating on Vishay Intertechnology (VSH – Research Report), reducing the price target to $14.00.

Ruplu Bhattacharya has given his Sell rating due to a combination of factors impacting Vishay Intertechnology’s financial performance. One significant issue is the underutilization of the Newport fabrication facility, which has negatively affected gross margins and is expected to continue doing so for several quarters. Additionally, the company faces challenges from tariffs and rising commodity costs, which further pressure margins.
Despite some positive developments, such as improving distributor inventory levels and a better book-to-bill ratio, the overall outlook remains weak. The automotive and industrial markets, which are key for Vishay, are expected to stay sluggish in the near term. Furthermore, while there is potential for price increases in the Passives segment, this could also strain margin rates. Consequently, Bhattacharya has adjusted the price objective to $14, reflecting a cautious stance on Vishay’s prospects.

Bhattacharya covers the Technology sector, focusing on stocks such as Jabil, Sanmina-Sci, and Ingram Micro Holding Corporation. According to TipRanks, Bhattacharya has an average return of 1.1% and a 54.46% success rate on recommended stocks.