Shares of Power Integrations (POWI) plummeted 5.25% in early trading on Thursday, as the company faced a wave of target price cuts from multiple financial institutions. The significant drop in stock price comes amid growing concerns about the company's future performance.
The sell-off was triggered by a series of analyst reports adjusting their outlook on Power Integrations. Deutsche Bank led the bearish sentiment by reducing its target price to $45 from $55, representing a substantial 18% cut. This move was quickly followed by Benchmark, which lowered its target to $50 from $55, and Susquehanna, which also cut its target to $50 from $55. Stifel joined the chorus, slashing its target price to $56 from $70, marking a 20% reduction.
These consecutive target price cuts from reputable financial institutions signal a shift in market perception towards Power Integrations. While the specific reasons behind the analysts' decisions were not detailed in the reports, such widespread downgrades often reflect concerns about a company's growth prospects, market conditions, or other factors that could impact its financial performance. Investors reacted swiftly to this negative sentiment, driving the stock price down in early trading.
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