Needham analyst Rajvindra Gill maintained a Buy rating on Silicon Laboratories (NASDAQ: SLAB) today and set a price target of $115. The company’s shares opened today at $97.85.
Gill observed:
“Last week, we hosted a series of investor meetings in SLAB’s CFO John Hollister and IR Jalene Hoover. We came away more confident that the IoT segment (~53.5% of sales) should reaccelerate in C4Q19/1H19 primarily fueled by the reigniting of the U.K. Smart Metering ramp. We also discussed the possible impact on tariffs and believe, at this stage, it will have a minimal impact on SLAB’s overall business. We are encouraged by the continued ramp in timing and isolation products, which carry significantly higher gross margins. With the stock down about 10.5% over the past three-months (vs. +5.6% SP50), we believe these risks have been largely priced in and we see upside for the shares to $115/share.”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 20.8% and a 66.5% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Smart Global Holdings Inc, Everspin Technologies Inc, and Adesto Technologies Corp.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Silicon Laboratories with a $119.80 average price target.
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Based on Silicon Laboratories’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $14.28 million. In comparison, last year the company had a net profit of $16.57 million.
Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock.
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Silicon Labs engages in the provision of silicon, software and solutions for a smarter, more connected world. Its products include Internet of Things products, which include microcontroller, wireless and sensor products; broadcast products, which include broadcast consumer and automotive products; infrastructure products, which include timing products, and isolation devices; and access products, which include voice over IP products, embedded modems and Power over Ethernet devices. The company was founded by Navdeep S. Sooch, David R. Welland, and Jeffrey W. Scott in August 1996 and is headquartered in Austin, TX.
