International Rectifier Shows Strong Business Trends, FBR Capital Maintains Outperform Rating

FBR Capital Markets has published a research report on International Rectifier Corporation IRF after the company's 1Q results show strong business trends that should continue through at least the next quarter, if not more. In the report, FBR writes "Recent channel checks suggest that International Rectifier's (IR) business trends remain robust thus far in 1Q11, and should track solidly for 2Q11 also, though with some risks that 2Q11 gross margins could disappoint slightly as higher-margin industrial business mixes out and lower margin computing and consumer business mixes in. Regarding the tragic Japanese earthquake, we believe there will be little impact to IR's calendar 1Q11, but with undetermined impacts in calendar 2Q11. The firm's automotive business could be negatively impacted from plant shutdowns and production delays, and prices for raw silicon wafers could move higher. On the other hand IR's selling prices for IGBTs and FETs could possibly increase by 3%–5% given production disruptions at Japanese competitors like Rohm, Hitachi, and Renesas." FBR Capital maintains its Outperform rating and $38 price target. International Rectifier Corporation closed yesterday at $32.10.