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Investing.com - Benchmark lowered its price target on Power Integrations (NASDAQ:POWI) to $55.00 from $70.00 on Monday while maintaining a Buy rating following the company’s second-quarter results and disappointing guidance. The stock, currently trading at $44.42, has declined nearly 28% year-to-date, according to InvestingPro data.
The research firm cited near-term macro and tariff-related headwinds, particularly in the consumer appliance segment, as factors weighing on the outlook. Nevertheless, the company maintains strong fundamentals with a robust 54.8% gross profit margin and an impressive current ratio of 7.43, demonstrating solid financial health according to InvestingPro data.
Under new CEO Dr. Jennifer Lloyd, the company is pursuing a strategy to accelerate expansion into higher-power, higher-value markets including automotive, AI data centers, and modern grid infrastructure, leveraging its high-voltage GaN technology and design-win pipeline.
Benchmark characterized the current appliance demand softness and order volatility as temporary pressures in an otherwise intact growth story, with industrial, automotive, and AI segments expected to drive multi-year growth.
The firm expressed confidence in the company’s longer-term fundamentals, noting that Power Integrations’ leading GaN technology provides significant opportunities to gain market share and capture new markets, with Dr. Lloyd’s expertise potentially reinvigorating growth toward the $1 billion target.
In other recent news, Power Integrations reported its financial results for the second quarter of 2025, revealing a mixed performance. The company missed earnings per share (EPS) estimates, posting $0.35 compared to the forecasted $0.36, a 2.78% shortfall. However, Power Integrations exceeded revenue expectations, generating $116 million against the anticipated $115.02 million, reflecting a 9% increase from the previous year. These results highlight a revenue beat despite the EPS miss. Analysts had expected slightly higher earnings, but the revenue growth indicates strong sales performance. The financial update provides investors with a nuanced view of the company’s recent performance. The developments are part of Power Integrations’ ongoing financial narrative.
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