Benchmark Co. analyst David Williams reiterated a Buy rating on Power Integrations today and set a price target of $55.00.
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David Williams has given his Buy rating due to a combination of factors that highlight Power Integrations’ potential for long-term growth despite current challenges. The company has demonstrated strong execution with robust top-line growth, resilient margins, and solid cash generation. However, near-term macroeconomic and tariff-related challenges, particularly in the consumer appliance sector, have impacted the outlook. Under the leadership of the new CEO, Dr. Jennifer Lloyd, the company is strategically expanding into higher-power and higher-value markets such as automotive, AI data centers, and modern grid infrastructure, leveraging its advanced GaN technology and a strong design-win pipeline.
While there are temporary pressures due to softness in appliance demand and order volatility, the overall growth story remains intact, driven by industrial, automotive, and AI segments. The long-term fundamentals are promising, with the company’s leading GaN technology offering significant opportunities for market share gains and entry into new markets. The new leadership is expected to reinvigorate growth towards a $1 billion target, and despite a moderation in growth expectations for FY25, the company anticipates re-accelerating growth in the coming years as demand normalizes and its pipeline strengthens.
In another report released on August 7, Northland Securities also maintained a Buy rating on the stock with a $69.00 price target.