Silicon Motion Technology (SIMO): Investor Concerns Overblown - KeyBanc

KeyBanc analyst, Michael McConnell, reiterated his Overweight rating on shares of Silicon Motion Technology (NASDAQ: SIMO) after speaking with back-end test houses and the SSD supply-chain over the past week.

The analyst walked away confident that investors should use this as a buying opportunity citing 4 points:

1) there is lower demand forecast variability but back-end test houses are incrementally more confident on Silicon Motion’s business momentum into 2018

2) stable demand forecasts support a healthy company relationship with SK hynix

3) supply-chain commentary supports incremental confidence that SSD attach rates will be materially higher in 2018, with limited downside risk from current NAND
bit growth forecasts

4) the analyst believes there is ample margin leverage in the model

No change to the price target of $60.

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 $48.15 yesterday.

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