Needham & Company Reiterates Bullish Stance on Silicon Motion (SIMO) Following Needham Growth Conference Presentation

Needham & Company analyst Rajvindra Gill reiterated a Buy rating and $37 price target on Silicon Motion Technology (NASDAQ: SIMO) after the CFO Riyadh Lai presented at the Needham Growth Conference. The analyst said the stock remains an undervalued revenue growth story.

Gill commented, "We remain bullish on the stock, and believe the sell-off in the shares (down 10%) following SNDK's negative pre was unwarranted. We remain confident that SIMO can achieve its 15-20% eMMC growth rate in '15, but waiting to see if there is potential upside to that estimate given the concentration at SK Hynix and their market share dominance in China handsets. Possible eMMC upside could come from a higher ramp of TLC, China handset growth and ongoing share gains by SK Hynix vis-à-vis Samsung. On the client SSD side, we are encouraged with the ramp with MU's SSD controllers and expect PCIe products late 2015. On the gross margin front, we see upside to ests as SIMO mix shifts to client SSDs and removable becomes a smaller % of sales."

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 $24.21 yesterday.

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