Power-One, Inc. (PWER)

[eastunder]

Doughterty & Co Lowers Price Target on Power-One (PWER), Tells Investors To Buy on 33%+ Upside9:33 am ET 04/07/2011-

Dougherty & Co is lowering its price target on shares of Power-One (NASDAQ: PWER) from $14 to $11 to reflect the company's pre-announced Q1 results which came in below the Streets estimates.

The company pre-released its Q1 revenue with a range of $240-245 million which is well below its previous guidance of $260-$290 million. The firm lowered its Q1 revenue and EPS estimates from $275 million and $0.27 to $245 million and $0.18. The firm also lowered its FY11 estimates from $1,200 million and $1.17 to $1,050 million and $0.89, and its FY12 from $1,400 million and $1.33 to $1,200 million and $1.10. The downside was due to market conditions and near-term FiT uncertainty in Italy and Germany.

The firm is reiterating its Buy rating and is telling investors to really take advantage of the current weakness in the stock. The stock offers 33%+ upside from current price and new price target. New incentives are expected to be announced in the near-term which the firm believes will cut some of the uncertainty and enable PV financing to free up.