UPDATE: Jefferies Downgrades Power One to Hold Following Acquisition Announcement

In a report published Tuesday, Jefferies analyst Scott Reynolds downgraded the rating on Power One (NASDAQ: PWER) from Buy to Hold, and raised the price target from $5.00 to $6.35. In the report, Reynolds noted, “Following ABB's acquisition announcement for PWER of $6.35/share, we are downgrading to Hold from Buy as we don't expect a competing bid to emerge. We continue to see the inverter space as a bright spot in the solar value chain however results are expected to remain challenging for the NT and we do not see ABB's bid as an implication of a demand inflection.” Power One closed on Monday at $6.33.