Standpoint Research Starts Silicon Motion Technology (SIMO) at Buy, Sees 37% Upside
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Price: $71.84 -1.99%
Rating Summary:
15 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
15 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Standpoint Research initiates coverage on Silicon Motion Technology (NASDAQ: SIMO) with a Buy. PT $22.00.
Analysts Ronnie Moas comments, "SIMO ranked # 34 acording to our 155-variable computer model (out of 580 names) and passed fundamental and subjective overlays. It is a name that I was working on the past couple of weeks … it is not an easy company to analyze... SIMO is heavily levered to the smartphone market and contrary to some misinformation on some Internet sites, SIMO competes with firms that are smaller than they are and not NVDA/AMD... I did speak with the company today. Two-thirds of their revenue is coming from Mobile Storage and one-quarter is coming from Mobile Communications... The company is heavily levered to the smartphone market but there may not necessarily be a 1-to-1 correlation between growth at SIMO and the smartphone market."
Samsung is their biggest client and accounts for 25% of revenues. Samsung is doing well and SIMO benefits from that. I do not see any risk to this relationship as Samsung is depending on SIMO as one of their key suppliers.
SIMO is based in Taiwan and has close relationships with Taiwan Semi, SMIC and Silterra.
Estimates for 2012 are for $1.79 on $284 mln in revenue. For 2013 estimates are for $1.96 on $324 mln in revenue. SIMO has been beating estimates consistently; usually by wide margins.
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 $16.31 yesterday.
Analysts Ronnie Moas comments, "SIMO ranked # 34 acording to our 155-variable computer model (out of 580 names) and passed fundamental and subjective overlays. It is a name that I was working on the past couple of weeks … it is not an easy company to analyze... SIMO is heavily levered to the smartphone market and contrary to some misinformation on some Internet sites, SIMO competes with firms that are smaller than they are and not NVDA/AMD... I did speak with the company today. Two-thirds of their revenue is coming from Mobile Storage and one-quarter is coming from Mobile Communications... The company is heavily levered to the smartphone market but there may not necessarily be a 1-to-1 correlation between growth at SIMO and the smartphone market."
Samsung is their biggest client and accounts for 25% of revenues. Samsung is doing well and SIMO benefits from that. I do not see any risk to this relationship as Samsung is depending on SIMO as one of their key suppliers.
SIMO is based in Taiwan and has close relationships with Taiwan Semi, SMIC and Silterra.
Estimates for 2012 are for $1.79 on $284 mln in revenue. For 2013 estimates are for $1.96 on $324 mln in revenue. SIMO has been beating estimates consistently; usually by wide margins.
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 $16.31 yesterday.
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