Diodes Gets Price Target Boost as New Leadership Charts Growth-Focused Course

Jun 13, 2025 4:48 PM - Davit Kirakosyan

Image credit: FMP

Benchmark raised Diodes (NASDAQ:DIOD) price target from $55 to $62 while maintaining a Buy rating. The upgrade reflects growing optimism around the company’s evolving strategy under its recently appointed leadership team.

Following meetings with CEO Gary Yu and CFO Brett Whitmire, the analysts highlighted a strategic shift that, while not drastic, signals a notable change in direction. Under Yu’s leadership—shaped by a customer-first mindset—Diodes is transitioning from a process-heavy focus to a more product-driven model aimed at unlocking greater value through innovation and targeted investments.

This pivot includes a stronger emphasis on system-level solutions and strategic acquisitions, all designed to expand the company’s role in the value chain and increase its share of Bill of Materials (BOM) content. A key long-term goal is restoring gross margins to above 40%, positioning the firm for stronger profitability.

Management struck an optimistic tone regarding ongoing demand, expressing confidence in the company’s growth trajectory despite broader economic uncertainties. As this new strategy unfolds, the analysts see a clear path to upside potential in both revenue and margin performance.

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