UPDATE: Sterne Agee Raises PT on Diodes on 'More Confidence in Mgmt Refocus on Product Mix, Differentiation & GM Improvement'

In a report published on Wednesday, Sterne Agee analyst Vijay Rakesh raised the price target on Diodes DIOD from $30 to $31 and maintained a Buy rating.

In the report, Sterne Agee stated, "We note four takeaways post meetings with DIOD management: 1) key is a management refocus on higher margin products which should help drive multiple expansion, with differentiated CSP-DFN packaging, better BCD analog mix, lower gold prices, 2) back to more seasonal 3Q trends better than the past 1-2-year muted seasonality, 3) focus on utilizing current capacity and lower Capex at 5-9% of revenues, 4) BCD integration running in line or ahead of schedule."

Diodes closed on Tuesday at $25.23.