Power Solutions price target raised to $37 from $22 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Power Solutions (PSIX) to $37 from $22 and keeps a Buy rating on the shares. The firm notes the positive financial inflection continued for Power Solutions in its Q3 with revenues, EBITDA and EPS ahead of expectations and it reiterated its FY24 revenue growth guidance of +3% year-over-year, again with Power Systems strength offsetting Industrial and Transportation volumes. Craig-Hallum views Q3 as the latest clear indication of Power Solutions’ laser focus on profitability. The firm also notes that while it is masked by Power Solutions’ expectation of modest overall year-over-year growth, its Power Systems segment grew +39% year-over-year and is at the front end of a substantial growth trajectory in data center applications.