UPDATE: Sterne Agee Upgrades Diodes to Buy on Improving Margins

Sterne Agee raised its rating on Diodes

from Neutral to Buy and increased its price target from $13 to $22. Sterne Agee noted, "While DIOD has underperformed the Analog group with declining gross margins, we believe gross margins will bottom at current levels. Also flattish fab capacity in 2013, improving end markets, and product mix position DIOD for improving gross margins and a multiple expansion from current levels." Diodes closed at $16.21 on Thursday.