SiTime Corp. (SITM) PT Raised to $330 at Needham & Company

Needham & Company analyst Quinn Bolton raised the price target on SiTime Corp. (NASDAQ: SITM) to $330.00 (from $180.00) while maintaining a Buy rating.

The analyst commented, "SiTime's 3Q21 results and 4Q21 guidance far exceeded expectations across revenue, GM and EPS. Key factors in the strong quarter include 1) secular growth in an expanding SAM, 2) a premium product in high demand and customers willing to pay premium prices for turns orders, 3) rising ASPs, 4) lack of competition in the MEMS timing market, and 5) favorable product mix. Management believes these factors lay the foundation for at least 30% revenue growth in 2022, an outlook backed by increasing visibility as customers are placing orders multiple quarters out. Driven by SiTime's stronger outlook and its growing SAM (now $1B up from $600MM just two years ago), we are raising our estimates and switching from an EV multiple to a DCF valution methodology. Our DCF leads us to raise our PT to $330, using a 7.9% WACC and 40x terminal P/E value."

You May Also Be Interested In

• Gemini Space Station (GEMI) PT Lowered to $6 at Needham
• Enhanced Group Inc. (ENHA) PT Lowered to $5 at Canaccord
• Needham Starts Pulse Biosciences (PLSE) at Buy