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Research Alert: CFRA Maintains Strong Sell Opinion On Shares Of Diodes Incorporated
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Research Alert: CFRA Maintains Strong Sell Opinion On Shares Of Diodes Incorporated
May 26, 2025 8:00 AM

02:15 PM EDT, 05/14/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our target by $4 to $35, 15.5x our 2026 EPS view, just below DIOD's three-year average of ~16x as auto/industrial demand weakness and evolving uncertainty around tariffs and export controls more than offsets early AI tailwinds in computing. We lower our 2025 EPS view by $0.13 to $1.25 and 2026's by $0.35 to $2.26. DIOD's manufacturing base in China (63% of manufacturing square footage exiting 2024) should be able to cover local sales (China was 46% of Q1 sales, Americas 9%) and help DIOD largely avoid direct tariff exposure, but we still expect an industry slowdown if tariffs remain elevated, driving customer uncertainty and slower inventory movement as supply chains shift. Despite recent progress on U.S./China tariffs, we think Section 232 tariffs on autos/semis will still slow industry activity significantly, and DIOD is ill positioned for this slowdown given its elevated inventory levels (DSI of 187 is well above its 77-98 "normal" range). Our price target is near tangible BV/share ($33.56).

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