David Williams, an analyst from Benchmark Co., reiterated the Buy rating on Diodes (DIOD – Research Report). The associated price target is $55.00.
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David Williams has given his Buy rating due to a combination of factors that highlight Diodes’ strong performance and potential for growth. The company’s first-quarter results exceeded expectations, with revenue and earnings surpassing consensus estimates. This was largely driven by robust demand in the Computing segment, particularly in data centers and AI servers in Asia. Despite some macroeconomic uncertainties, Diodes is showing resilience with a strengthening book-to-bill ratio and backlog across all regions.
While there are challenges such as pressure on gross margins due to slower recovery in the Auto and Industrial sectors, the company is positioned to benefit from improving pricing trends and a diversified manufacturing footprint that mitigates tariff impacts. The stable demand in core markets like Automotive and Industrial, along with strong design wins, supports a positive outlook. Consequently, Williams maintains a Buy rating, albeit with a revised price target to reflect a more conservative earnings forecast amid macro uncertainties.
In another report released on May 8, Robert W. Baird also maintained a Buy rating on the stock with a $50.00 price target.