Stifel analyst Tore Svanberg has revised the price target for Power Integrations (POWI, Financial), lowering it from $90 to $70, while maintaining a Buy rating on the stock. This adjustment comes as the firm assesses the impact of tariffs, which they believe will lead to generally consistent results for the March quarter in the Analog, Connectivity, and Processors sector. However, they anticipate a weaker outlook for the June quarter.
The pervasive effects of tariffs, including both direct and indirect consequences, are contributing to Stifel's cautious stance as the upcoming earnings season approaches. The firm expresses concern that the overall semiconductor industry may be on the brink of a cyclical downturn, with the probability of this scenario having increased significantly.
