NEW YORK (TheStreet) -- Shares of Power Integrations Inc. (POWI) are down -27.46% to $42.38 after Sterne Agee downgraded the company's rating to "neutral" from "buy" after the company reported weaker than expected demand in computers and communications.
The firm said operating leverage for the company, which designs, develops and manufactures high voltage, analog and mixed signal integrated-circuit products and high voltage silicon diodes, "is much more of a challenge."
Power Integrations revenue grew 5% year over year versus Sterne's estimate of 14%. The firm cut its estimates for the company's 2014 second quarter to 57 cents from 68 cents per share.
Separately, TheStreet Ratings team rates POWER INTEGRATIONS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate POWER INTEGRATIONS INC (POWI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."