Power Integrations: Strong Market Position and Growth Potential Justify Buy Rating

Benchmark Co. analyst David Williams maintained a Buy rating on Power Integrations (POWI – Research Report) today and set a price target of $70.00.

David Williams has given his Buy rating due to a combination of factors that highlight Power Integrations’ strong market position and growth potential. The company has shown stable booking trends and healthy inventory levels, which suggest resilience against macroeconomic uncertainties. Despite the impact of tariffs, the demand appears to be stabilizing, and the revenue aligns with expectations, supported by better-than-anticipated gross margins and controlled operating expenses.
Additionally, Power Integrations is making significant strides in the automotive sector, particularly with its GaN technology, which has secured a notable win in the EV market. The company’s proactive approach to share repurchases, backed by robust cash generation and a solid balance sheet, further strengthens its financial position. These factors collectively contribute to the optimistic outlook for sustained revenue growth and justify the Buy rating with a price target adjustment to $70.

In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $75.00 price target.

Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of POWI in relation to earlier this year.