Nomura/Instinet Upgrades Silicon Motion Technology (SIMO) to Neutral

Nomura/Instinet analyst Donnie Teng upgraded Silicon Motion Technology (NASDAQ: SIMO) from Reduce to Neutral with a price target of $40.00 (from $30.00).

The analyst comments "We had a non-consensus Reduce on SIMO given: 1) ASP pressure in client
SSD controller; 2) eMMC (embedded Multi-Media Controller)/UFS (universal flash storage) loss although well-known remaining a drag on earnings and 3) muted outlook for the enterprise SSD business. However, we upgrade the name to Neutral as after SIMO’s significant stock underperformance over the past year (SIMO -31% vs NASDAQ +9%), for the first time since 2H18 SIMO did not miss its guidance in 3Q19 preliminary results on the back of recovery in the eMMC/UFS business and continued uptrend in the client SSD controller business."

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 $36.25 yesterday.

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