Ambarella (AMBA) and Silicon Labs (SLAB) Stand Out as Acquisition Candidates - KeyBanc
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KeyBanc analyst John Vinh reiterated an Overweight rating Ambarella (NASDAQ: AMBA) and Silicon Labs (NASDAQ: SLAB) citing the two companies as the Semis most likely to be acquired as the M&A landscape heats up.
The analyst stated "With semiconductor M&A activity starting to heat up again, we are updating our model and framework, which consists of a multi-factor quant model and qualitative analytics. Underlying the consolidation, we see: 1) diversification into secular growth areas in IoT, automotive, and cloud; and 2) increased scale and customer breadth, as key underlying deal drivers within the space. We expect further consolidation to continue, but note U.S./China political tensions and uncertainty regarding regulatory approvals could limit larger scale M&A. Companies that could be acquired next include AMBA or SLAB".
Shares of Ambarella closed at $44.50 yesterday.
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