FBR Capital Maintains an 'Outperform' on Silicon Labs (SLAB); Raises PT & Estimates After Blowout Qtr

October 28, 2009 2:11 PM EDT

FBR Capital maintains an Outperform on Silicon Labs (Nasdaq: SLAB), raises price target to $58.

FBR analyst says, "Silicon Laboratories reported blowout results and guidance. Third-quarter revenues of $126 million grew an impressive +21% sequentially and +11% year over year (one of the strongest semiconductor growth stories around, along with Atheros (Nasdaq: ATHR), NetLogic (Nasdaq: NETL), Cavium (Nasdaq: CAVM), and Monolithic Power(Nasdaq: MPWR))...Indeed, we believe the firm is in the very early innings of these growth initiatives and that someday, Silicon Labs can generate $1 billion in annual revenues...We maintain our Outperform rating and are raising our 2009 pro forma EPS estimate from $1.85 to $1.95, our 2010 estimate from $2.25 to $2.40, and our price target from $56 to $58, based on a 2010 target P/E multiple of 21x. We believe this target multiple is somewhat conservative given Silicon Labs' demonstrated ability to outgrow peers while sustaining a premium margin structure."

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Silicon Laboratories Inc. engages in the design and development of analog-intensive and mixed-signal integrated circuits (ICs)

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