Power Integrations (POWI) shares are trading lower after Deutsche Bank analyst Ross Seymore this morning cut his rating on the chip maker’s shares to Hold from Buy on a valuation basis.
“While we remain positive on POWI’s near-term fundamentals, and long-term growth prospects, we believe these positive attributes are fairly reflected in the company’s current valuation,” he writes. Seymore keeps his price target at $40; the stock closed last week at $41.36.
Meanwhile, the market is largely ignoring a more bullish note on the company from Needham analyst Vernon Essi, who repeated his Buy rating on the stock this morning, while lifting his price target to $46, from $30. “We continue to believe that POWI is taking share in energy efficiency design implementations and the overall market is on a significant uptrend,” he writes. “And while the shares have performed well over the past couple of months along with the rest of the sector, we believe that P/E expansion is warranted.”
POWI is down $1.02, or 2.5%, to $40.34.
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