Through much of 2023-2024, Vishay experienced a protracted weak operating environment but has since recovered, with four consecutive quarterly book to bill ratios of 1.0x or better, providing optimism that the worst is over. The company has a margin profile that can result in sizable profit swings as it generates an incremental/decremental operating margin of 35%-60%. This allows for a fast profit rebound should conditions improve above our projections. Our $37 price target is based on 22x our 2027 EPS estimate of $1.66. Our moderate risk rating reflects the company's strong balance sheet and solid cash flow generation.