UPDATE: Stifel Nicolaus Raises PT to $45 on Power Integrations; Q1 Beat, Q2 Raise
Stifel Nicolaus increases its price target from $44 to $45 on Buy-rated Power Integrations (NASDAQ: POWI) on business recovery and continuing strength.
Stifel Nicolaus comments, "Business rebounded strongly in the March quarter with industrial and consumer up double-digits sequentially. Moreover, growth momentum in key targeted markets LED lighting and high-power remains intact with design wins and continuous ramp. Additionally, the company is accelerating its penetration into the high-power markets with strategic investment in SemiSouth and acquisition of CT-Concepts. Looking ahead, positive bookings trend has persisted since turning around in November and the company appears confident with its guidance. Although acquisition-related GAAP items will impact GAAP gross margin, non-GAAP gross margin excluding these items as well as share-based compensation remains on-track to reach 50% by 2012 year-end."
POWI closed at $37.21 on Thursday.
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