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Needham & Company Maintains a 'Buy' on Silicon Image (SIMG); Solid Quarter and Guide; MHL Ramp is Humming Along

October 26, 2011 7:39 AM EDT
SIMG Hot Sheet
Rating Summary:
    4 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company maintains a 'Buy' on Silicon Image (NASDAQ: SIMG) price target of $8.50.

Needham analyst says, "We maintain our Buy and $8.50 price target on SIMG following a solid quarter and guidance. In light of a deteriorating macroeconomic climate and a tough CE environment, SIMG was able to grow 12% sequentially on the heels of stellar MHL revenues and a rebound in DTVs off the bottom. MHL is ramping nicely, growing ~30% Q/Q and we estimate could grow 60% Y/Y in 2012. With DTVs expected to normalize in 2012, we don’t believe the stock price truly reflects the magnitude of the mobile opportunity. Within our coverage universe, SIMG represents a pure play product cycle story with significant TAM expansion (2BN unit TAM in 5-years). We continue to see upside for the shares over the next 12-months...2011 estimates move to $220MM/$0.17 (vs. $214MM/$0.12). Our 2012 estimates of $280.0MM/$0.40 remain unchanged."

For more ratings news on Silicon Image click here and for the rating history of Silicon Image click here.

Shares of Silicon Image closed at $6.76 yesterday, with a 52 week range of $4.41-$10.20.


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