After Loop Capital Markets and Needham assigned a Buy rating to Silicon Motion in the last month, the company received another Buy, this time from Brean Capital. Analyst Mike Burton reiterated a Buy rating on Silicon Motion (NASDAQ: SIMO) today and set a price target of $60. The company’s shares opened today at $44.24.
Burton commented:
“We hosted a pre-CES investor dinner with Silicon Motion last night in Las Vegas. The dinner was well attended and we came away again impressed by the growth prospects SIMO has in front of it in 2017, 2018 and beyond in areas such as Enterprise & Client SSD markets. We believe CES will be a constructive backdrop for SIMO as the company demonstrates new applications for its products as well as meets with investors to quell some of the recent concerns in the name. Investor concerns centered around 1) the potential risk from Hynix using its own controller, 2) the slowing growth in core Mobile and Client SSD markets, and 3) risks related to a potential overbuild in Chinese handsets. We believe all these concerns are valid; however, we believe that these risks have been fully factored into the guidance for Q4 and 2017 and the shares of SIMO at this point. In the very near term, we do believe that supply constraints on NAND may limit the amount of upside to the December quarter, we nevertheless think the results will likely be in line to slightly higher than guidance (we note that if history is a guide SIMO generally provides a preliminary report the first full week of the next quarter so expect one any day).”
According to TipRanks.com, Burton is a 5-star analyst with an average return of 12.1% and a 63.5% success rate. Burton covers the Technology sector, focusing on stocks such as Integrated Device Tech, Himax Technologies, and Skyworks Solutions.
Currently, the analyst consensus on Silicon Motion is Strong Buy and the average price target is $57.67, representing a 30.4% upside.
In a report released yesterday, Pacific Crest also assigned a Buy rating to the stock with a $54 price target.
The company has a one year high of $56.25 and a one year low of $27.35. Currently, Silicon Motion has an average volume of 614.1K.
Silicon Motion Technology Corp. engages in the development, manufacture, and supply of semiconductor products for the electronics market. It operates through the following segments: Mobile Storage, Mobile Communications, and Others. It offers embedded and expandable storage, radio frequency integrated circuits, and embedded graphics. The company was founded in November 2005 and is headquartered in Jhubei City, Taiwan.
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