UPDATE: Sterne Agee Reiterates Buy Rating, Raises PT on Diodes on Raised MarQ Expectations

In a report published Friday, Sterne Agee reiterated its Buy rating on Diodes

, and raised its price target to $28.00. Sterne Agee noted, “DIOD raised its MarQ expectations on its mid-quarter guide, raising its core top line while also closing its BCD acquisition. BCD will add ~1 month of revenues in the MarQ. We believe DIOD can sustainably improve GMs over the next 4-8 quarters as it moves BCD's outsourced packaging (~50% of chip cost) in-house. We believe DIOD is underappreciated and can deliver significant upside into 2014. Raising estimates and DIOD PT to $28.” Diodes closed on Thursday at $20.35.