JP Morgan Reiterates Neutral on Vishay Intertechnology

JP Morgan remains rated Neutral on Vishay Intertechnology VSH as improving order trends may limit downside and offset results and guidance that came in below Street consensus. JP Morgan notes, "Q4 results and Q1 guidance were weaker than our below-Street forecasts. However, inventory declined 9% overall and 4% at distributors, which should benefit margin leverage when sales rebound. Vishay's outlook calling for another quarter of inventory reduction appears to be slightly lagging passive semi and electronic component and peers, but we believe improving order trends provide evidence that Vishay should eventually participate in the nascent up cycle." VSH closed at $12.80 a share on Monday.