Needham & Company Maintains Bullish Stance on Silicon Labs (SLAB) after CEO Meeting

May 15, 2013 7:50 AM EDT Send to a Friend
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Price: $45.14 +0.36%

Rating Summary:
    14 Buy, 7 Hold, 0 Sell

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    Up: 13 | Down: 18 | New: 41
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Needham & Company reiterated its Buy rating and $48 price target on Silicon Labs (NASDAQ: SLAB) following an upbeat Austin Semiconductor Bus Tour.

Analyst Vernon Essi, Jr. comments, "Yesterday on our Austin Semiconductor Bus Tour we met with SLAB CEO Tyson Tuttle. The discussion covered a range of topics,
most of which were a review of the Q1 results and guidance. We reviewed the $10M Q/Q drop in the legacy end-of-life products consisting of handset FM tuners, STB modems and touch controllers. We also discussed the Broadcast opportunity and mgmt characterized the video side of the market as being in the 5th inning with respect to the transition from traditional to silicon-based tuners, as well as incremental customer wins. The Timing business continues to have multiple new products rolling out and there was optimism that telecom spend may pick up in 2H 2013 to help that business. Furthermore, the MEMS-based timing products are
expected to recognize revenue in 2014 after a couple of years of development. The CFO search continues, but is less urgent given the tenure of the current CFO, Bill Bock. Last, no discussion on SLAB is complete without a review of the "internet of things" and the recent achievements in the marketplace. We see plenty of runway in 2013 for revenue growth and reiterate our Buy rating and $48 price target."

For an analyst ratings summary and ratings history on Silicon Labs click here. For more ratings news on Silicon Labs click here.

Shares of Silicon Labs closed at $40.64 yesterday.


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