Silicon Motion Technology (SIMO) PT Lifted to $28 at Needham & Company

July 7, 2014 12:10 PM EDT
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Price: $42.74 +1.06%

Rating Summary:
    10 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company analyst Rajvindra Gill raised estimates and his price target on Buy-rated Silicon Motion Technology (NASDAQ: SIMO) after the company raised its top-line Q2 outlook sharply.

Gill commented, "SIMO, this morning, significantly raised its 2Q revenue and GM guidance: sequential revenue growth of 30-32% vs. previously announced 10-15% (mid-range implies $69.2M compared to our $59.5M). GMs are expected to be 51-52% vs. to 48-50%. The upside is coming from strength in eMMC and SSD, and LTE to a lesser extent. We believe SIMO is well-positioned to capitalize on the eMMC and SSD trend, with its legacy business “troughing”. In addition, SIMO could be a prime acquisition candidate by either a major flash vendor and/or large smartphone OEM given its expertise in TLC controller/SSD and LTE transceiver technology."

The firm raised FY 2014 EPS from $1.08 to $1.25 and FY 2015 EPS from $1.25 to $1.50.

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

Shares of Silicon Motion Technology closed at $21.49 yesterday.

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