DIOD Increases Q1 Guidance

Analysts at BMO Capital Markets reiterate their "outperform" rating on Diodes (NASDAQ: DIOD). The target price for DIOD is set to $30.

According to BMO Capital, Diodes has increased its Q1 revenue and gross margin guidance. Based on the revised guidance, Q1 could become a record quarter for Diodes, the analysts say. This is quite positive, considering that Q1 is normally a sequentially down quarter for DIOD due to several factors, including seasonal trends and the Chinese New Year holiday, the analysts add.

Gross margins at DIOD are expected to range between 32.5% and 33.1%, compared to the previous guidance of 32% to 33%. This also compares favourably to the estimate of gross margins of 32%, BMO Capital says.

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