Power Integrations (POWI – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Christopher Rolland from Susquehanna reiterated a Buy rating on the stock and has a $77.00 price target.
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Christopher Rolland has given his Buy rating due to a combination of factors, particularly Power Integrations’ strategic positioning in emerging growth markets such as Automotive and GaN technology. The company is anticipating substantial growth in its communications sector, driven by advancements in 5G fixed wireless technology in India, and an increase in dollar content in the cellphone business due to fast-charging trends. Although the industrial sector showed weaker than expected results, management predicts accelerated growth in this area due to reduced channel inventory and updated product designs.
Furthermore, Power Integrations is focusing on the GaN market, expecting it to surpass 10% of revenue, with AI servers poised to be a significant growth driver. This focus on GaN, alongside plans to expand its use in electric vehicle components such as DC-to-DC converters and onboard chargers, positions the company for future growth. Despite some challenges in the consumer and computer segments, the overall outlook is positive, supported by anticipated growth in gross margins and a continued focus on strategic markets, justifying the Buy rating.
According to TipRanks, Rolland is a top 100 analyst with an average return of 23.4% and a 60.12% success rate. Rolland covers the Technology sector, focusing on stocks such as Intel, Marvell, and Maxlinear.
In another report released today, Northland Securities also maintained a Buy rating on the stock with a $80.00 price target.