Needham & Company Starts Silicon Labs (SLAB) at Hold

Needham & Company initiates coverage on Silicon Labs (NASDAQ: SLAB) with a Hold rating, calling it a solid IoT play, although they would wait for a better entry point.

Analyst Rajvindra Gill commented, "We are initiating coverage of Silicon Laboratories at Hold. We believe SLAB represents a compelling IoT play given its suite of MCUs, sensors, and low-power connectivity offerings, but we see shares as fairly valued at current levels. With the stock at historical levels and trading at ~19x P/E fwd 2016 estimates, well above its peer group, the risk/reward profile looks balanced. Should the stock decline to ~$45, we would become more constructive if SLAB is able to demonstrate progress toward its target model."

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 $51.10 yesterday.

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