Analyst confident in Power Integrations stock as company positions for growth recovery

On Wednesday, Benchmark reiterated its Buy rating on shares of Power Integrations (NASDAQ:POWI), maintaining a price target of $78.00. The reaffirmation follows a virtual Fireside Chat with Power Integrations CEO, Sandeep Nayyar, and Director of IR, Joe Shiffler. Despite a prolonged down cycle in the industry, Benchmark's outlook for the company remains positive.

The discussion with Power Integrations' executives revealed the company's expanding product portfolio and end market leverage, which are seen as key drivers for the firm's anticipated growth acceleration next year. Benchmark highlighted the company's strong design momentum across core growth vectors, which is supported by secular trends and offers substantial opportunities for content and serviceable available market (SAM) expansion.

Benchmark's confidence in Power Integrations' future performance is bolstered by the company's historical growth and earnings power, which are expected to resume as macroeconomic conditions improve. The analyst firm anticipates that this recovery will lead to the company outperforming previous cycles.

Power Integrations, known for its innovations in integrated circuits for energy-efficient power conversion, is navigating through a challenging period marked by a down cycle. However, the company's strategic focus on design wins and market expansion is setting the stage for a robust rebound.

Benchmark's maintained price target of $78.00 reflects a steady confidence in Power Integrations' potential to overcome current market adversities and emerge stronger. The firm's execution capabilities and strategic positioning are key factors in this optimistic assessment.

In other recent news, Power Integrations has seen several significant developments. The company announced a change in its executive sales leadership with the departure of Yang Chiah Yee, and the promotion of Gagan Jain to vice president of worldwide sales. In financial news, Power Integrations reported a Q1 revenue of $92 million and non-GAAP earnings of $0.18 per share, with a forecasted Q2 revenue of around $105 million.

The company also reported a robust Q2 with a 16% sequential increase in revenues. Power Integrations' entry into high-current Gallium Nitride (GaN) technology was marked by the acquisition of assets from Odyssey Semiconductor.

In the realm of stock analysis, Northland upgraded Power Integrations' stock rating and raised its price target to $80.00, citing successful clearance of channel inventory and promising developments in GaN technology. However, TD Cowen adjusted its price target for Power Integrations from $80.00 to $70.00, maintaining a Hold rating due to sequential growth guidance and a challenging market environment.

Lastly, Power Integrations announced the release of its SCALE-iFlex XLT family of gate drivers, expected to enhance single semiconductor module operation.

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