Needham & Company Maintains a 'Buy' on Silicon Motion Technology (SIMO); Positive Feedback from Marketing Trip

Needham & Company maintains a 'Buy' on Silicon Motion Technology (NASDAQ: SIMO) price target raised $3 to $25.

Needham analyst says, "Last week, Needham hosted investor meetings with Silicon Motion’s CFO (Riyadh Lai) in New York. The overall tone was decidedly bullish. SIMO has been a star this year with shares up 360% YTD (vs. SOX +3%). Is there more upside? We are raising our price target to $25 (from $22), which reflects 25% upside. There are four primary factors for our continued bullish stance: 1) ongoing growth in the classic controller card/USB flash drives due to a steady supply of the latest NAND flash (28nm TLC); 2) $50-$100MM TAM opportunity in 1-2 years in embedded NAND flash for smartphones, consumer electronics devices and tablets; 3) LTE Samsung (N/R) roll-out in 2012; and 4) hybrid solutions (i.e. NAND controller caching for HDDs) for Ultrabooks. With margins holding steady and rising ASPs, a bull case can be made for $2.00 of Non-GAAP earnings (we are currently at $1.35) in 2012."

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 $19.56 yesterday.

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