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Shares of semiconductor and electronics component maker Diodes Inc. fell Wednesday after a Roth Capital Partners analyst initiatedcoverage with a "Hold" rating, citing weak economic conditions.
"With end markets in consumer electronics, computing and automotiveproducts looking uncertain, we remain cautious on Diodes (nasdaq: DIOD - news - people )' ability to achieve meaningful organic growth in the second halfof 2008," analyst Jay Srivatsa wrote in a note to investors.
He also called the company's stock "fairly valued." He establisheda $27 price target on the shares.
Shares of Diodes fell $1.66, or 6.2 percent, to $25.20 Wednesday.The stock has ranged from $19.51 to $35 over the past year.
However, Srivatsa wasn't entirely downbeat on the company. He notedthe company's recent entry into the analog chip market as apromising development.
"Analog integrated circuit market being fragmented and possessing aprofile similar to discrete semiconductors, we believe Diodes couldgain meaningful penetration into this market in fiscal 2009 andbeyond.
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