Needham & Company Reiterates a 'Buy' on Silicon Image (SIMG); Meeting Expectations: Mixed DTV Offset By Mobile Upside

Needham & Company reiterates a 'Buy' on Silicon Image (NASDAQ: SIMG), PT $11.

Needham analyst says, "We believe SIMG’s recent share price decline (-21% last 2-months) is unwarranted and we would be buyers at these depressed levels. While we expect SIMG’s DTV business to be soft in the June quarter and for the Sept guide, we think the SIMG is mitigating this overall macro weakness through share gains with Instaport and through its new DTV customer, LG. More importantly, we believe the mobile segment, which is ramping materially ahead of expectations, could offset DTV weakness. As such, we expect SIMG to meet our expectations for June and September. With the shares trading below both its 50-day and 200-day MA, we recommend investors accumulate positions."

"We are officially adjusting our 2011/2012 estimates to reflect the SiBeam acquisition. For 2Q11, our Non-GAAP EPS estimate is reduced to $0.02 (vs. $0.04). For 2011, our Non-GAAP estimate declines to $0.17 (vs $0.25) to account for the additional expenses (adding 70 hdct) and higher share count (1.3MM shares). Our 2012 estimates decline to $0.55 (vs. $0.60)."

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 $6.64 yesterday.

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