UPDATE: Sterne Agee Downgraded Power Integrations to Neutral on Anticipated Weak Demand

Sterne Agee lowers its rating on Power Integrations

from Buy to Neutral and announces a price target of $43. Sterne Agee comments, "We are downgrading Power Integrations to Neutral from Buy. Our view is that June quarter consensus is achievable, but in the face of a weakening demand from consumer, computer, and mobile phone markets, which account for 65% of sales, September consensus may be too high. As a result, we believe the stock's multiple could contract. Our new target price is $43. Downgrade to Neutral." POWI closed at $40.98 on Tuesday.