Needham & Company Maintains a 'Buy' on Silicon Image (SIMG); Raising PT on Multi-Year Growth Cycle
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Price: $7.28 --0%
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 9 | New: 13
Rating Summary:
1 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 9 | New: 13
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Needham & Company maintains a 'Buy' on Silicon Image (NASDAQ: SIMG) price target of $8.00.
Analyst, Rajvindra S. Gill, said, "We are increasing our price target on SIMG following a “beat and raise” quarter on the top line. SIMG performed well in light of a deteriorating DTV environment driven by ongoing growth in MHL sales (mobile high definition link) to mobile handset OEMs and robust licensing sales. While SIMG’s strategic investments in sales/marketing and research/development may hamper earnings leverage in 2012, we believe SIMG offers investors a multi-year revenue growth story at a significant discount to fundamentals. Trading at 1x EV sales (on 2012) and 0.8x EV/sales (on 2013) and with revenue growth of 20%+, SIMG represents an attractive, small-cap product cycle story within our coverage universe. We see an accelerated ramp in MHL in 2012 and a multi-year play with 60Ghz wireless HD technology in handsets in 2013/2014."
"Based on higher OPEX and tax rate, our 2012 ests move to $260.0MM/$0.20 (vs. $260.0MM/$0.30). Our 2012 sales remain unchanged. We are introducing 2013 estimates of $310.0MM/$0.40. We are increasing our PT to $8 (vs. $7), which is based on 15x 2013, plus $2.00 net cash."
For an analyst ratings summary and ratings history on Silicon Image click here. For more ratings news on Silicon Image click here.
Shares of Silicon Image closed at $5.10 yesterday.
Analyst, Rajvindra S. Gill, said, "We are increasing our price target on SIMG following a “beat and raise” quarter on the top line. SIMG performed well in light of a deteriorating DTV environment driven by ongoing growth in MHL sales (mobile high definition link) to mobile handset OEMs and robust licensing sales. While SIMG’s strategic investments in sales/marketing and research/development may hamper earnings leverage in 2012, we believe SIMG offers investors a multi-year revenue growth story at a significant discount to fundamentals. Trading at 1x EV sales (on 2012) and 0.8x EV/sales (on 2013) and with revenue growth of 20%+, SIMG represents an attractive, small-cap product cycle story within our coverage universe. We see an accelerated ramp in MHL in 2012 and a multi-year play with 60Ghz wireless HD technology in handsets in 2013/2014."
"Based on higher OPEX and tax rate, our 2012 ests move to $260.0MM/$0.20 (vs. $260.0MM/$0.30). Our 2012 sales remain unchanged. We are introducing 2013 estimates of $310.0MM/$0.40. We are increasing our PT to $8 (vs. $7), which is based on 15x 2013, plus $2.00 net cash."
For an analyst ratings summary and ratings history on Silicon Image click here. For more ratings news on Silicon Image click here.
Shares of Silicon Image closed at $5.10 yesterday.
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