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DIOD: Automotive Expansion And Higher Multiple Will Drive Balanced Risk Reward

US China Tensions And Pricing Pressures Will Erode Future Margins

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DIOD
AnalystLowTarget
Not Invested
Published 22 Jun 2025

Update shared on 14 Dec 2025

Fair value Increased 19%
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AnalystLowTarget's Fair Value
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1Y
-20.3%
7D
-1.7%

Analysts have lifted their price target on Diodes from 43.00 dollars to 51.00 dollars, citing expectations for faster top line growth and a higher future earnings multiple. These factors more than offset slightly lower projected profit margins and a higher discount rate.

What's in the News

  • Launched AP61406Q automotive synchronous buck converter with I2C programmability for compact, high efficiency point of load designs in infotainment, telematics, and ADAS applications (company product announcement).
  • Introduced AL3069Q automotive 60V boost controller to drive larger LED backlight panels up to 32 inch diagonal, targeting infotainment, instrument clusters, and heads up displays (company product announcement).
  • Guided fourth quarter 2025 revenue to approximately 380 million dollars, plus or minus 3 percent, implying about 12 percent year over year growth and a fifth consecutive quarter of expansion (company guidance).
  • Expanded automotive connectivity portfolio with PI2DPT1021Q DisplayPort and USB 3.2 retimer and PI7C9X762Q I2C or SPI to dual channel UART bridge for smart cockpits and ADAS systems (company product announcements).
  • Broadened automotive lighting offerings with AL58818Q and AL58812Q multi channel LED drivers enabling precise color mixing and complex ambient lighting effects in interior and exterior modules (company product announcement).

Valuation Changes

  • The Fair Value Estimate has increased from 43.00 dollars to 51.00 dollars, reflecting a more optimistic view of intrinsic value.
  • The Discount Rate has risen from about 9.6 percent to about 10.6 percent, indicating a slightly higher required return and risk assessment.
  • Revenue Growth has been revised upward from roughly 6.1 percent to about 8.4 percent, signaling higher expectations for top-line expansion.
  • The Net Profit Margin has declined from around 13.7 percent to about 10.6 percent, incorporating assumptions of greater cost pressure or less pricing power.
  • The future P/E has increased from roughly 11.8 times to about 16.5 times, implying a higher valuation multiple on projected earnings.

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Disclaimer

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