Robert W. Baird analyst Tristan Gerra maintained a Buy rating on Diodes (DIOD – Research Report) yesterday and set a price target of $50.00.
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Tristan Gerra has given his Buy rating due to a combination of factors indicating a positive outlook for Diodes. The company is experiencing signs of recovery in end-demand, with distributor inventory levels normalizing and a strong beginning backlog. This positions Diodes for a high single-digit revenue rebound, outperforming its peers. Additionally, Diodes is focusing on gaining market share in higher-margin sectors such as automotive, which is expected to contribute to its growth.
While there are some challenges, such as delayed customer qualifications affecting the migration to internal manufacturing, Diodes is poised for share gains in the medium term. The company is expected to benefit from higher utilization rates as inventory levels normalize in the second half of the year. Moreover, Diodes’ significant manufacturing presence in key regions like the U.S., China, and Europe minimizes the direct impact of tariffs, further supporting its favorable position in the market.
Gerra covers the Technology sector, focusing on stocks such as Intel, ON Semiconductor, and Diodes. According to TipRanks, Gerra has an average return of 4.0% and a 45.11% success rate on recommended stocks.