UPDATE: Deutsche Bank Raises Target to $19 on Power Integrators

Deutsche Bank maintains its Buy rating on Power Integrators (NASDAQ: POWI) and raises its price target by $3 to $40 a share, reflecting lifted macro headwinds and a secular thesis that remains intact.

Deutsche Bank notes, "POWI reported solid 4Q results and provided seasonally flat 1Q guide as the co's order fundamentals began to improve exiting 2011 (4Q BtB roughly 1). Although NT uncertainty remains, we expect macro to improve throughout the year allowing POWI to outgrow its analog peers driven by secular growth in its core mkts and accelerated growth in new pdts (Lighting, High Pwr)."

POWI closed at $36.78 a share on Thursday.