Power Integrations (POWI) PT Lowered to $55 at Benchmark

Benchmark analyst Dave Williams lowered the price target on Power Integrations (NASDAQ: POWI) to $55.00 (from $70.00) while maintaining a Buy rating.

The analyst commented, "We reiterate our Buy rating but lower our price target to $55 from $70 following the mostly in-line 2Q results and disappointing guidance. While the company continues to execute well, delivering healthy top-line growth, margin resilience, and strong cash generation, near-term macro and tariff-related headwinds, particularly in the consumer appliance segment, weighed on the outlook. Under new CEO Dr. Jennifer Lloyd, management is advancing a clear strategy to accelerate the expansion into higher-power, higher-value markets including automotive, AI data centers, and modern grid infrastructure, leveraging its differentiated high-voltage GaN technology and strong design-win pipeline. While appliance demand softness and order volatility are likely to temper the next two quarters, we see these as temporary pressures in an otherwise intact growth story, with industrial, automotive, and AI segments driving a multi-year growth trajectory. The longer-term fundamentals remain healthy with leading GaN technology providing significant opportunities to gain share and capture new markets. We are encouraged by the new leadership and think Dr. Lloyd’s deep expertise and industry experience will reinvigorate growth toward the $1B target."

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