UPDATE: Jefferies & Company Reiterates Buy Rating, Lowers PT on Power-One

In a report published Friday, Jefferies & Company reiterated its Buy rating on Power-One PWER, but slightly lowered its price target from $6.00 to $5.00. Jefferies noted, “The company preannounced 4Q12 rev of $190-195M vs. prev $210-230M and a $12-15M loss. Margin pressure was surprising, and we believe increased competitive pressures and cont manufacturing issues in AZ affected margins, in addition to management's sited underutilization and ramp-up costs. With the company trading at ~8x ex. cash our 2013 EPS, we believe risks are fully priced into shares and we continue to see a positive risk/reward.” Power-One closed on Thursday at $3.92.