Benchmark maintains Buy rating for Silicon Labs stock at $160 target
Investing.com
Published May 27, 2025 10:50AM ET
On Tuesday, Benchmark analysts maintained their Buy rating for Silicon Labs (NASDAQ:SLAB) with a steadfast price target of $160.00. Currently trading at $124.14, the stock has analyst targets ranging from $100 to $160, with nine analysts recently revising their earnings expectations upward according to InvestingPro data. The endorsement follows a virtual group conference call last week with Dean Butler, Silicon Labs' CFO, Giovanni Pacelli, Senior Director of Finance, and Thomas Haws, Investor Relations Manager. The call, which included institutional investors, left the analysts reassured about the company's robust fundamental performance drivers.
The Benchmark team highlighted Silicon Labs' remarkable results and outlook presented during its recent earnings call, which surpassed Wall Street estimates. The company's substantial design win pipeline was emphasized, indicating strong growth potential across expanding market segments. While the company posted negative earnings in the last twelve months, InvestingPro analysis shows strong fundamentals with more cash than debt and liquid assets exceeding short-term obligations. The analysts noted the healthy channel inventory environment that Silicon Labs is operating in, which supports the continuity of supply and sales.
Moreover, strategic product advancements were discussed as a key factor in Silicon Labs' success. These advancements are expected to reinforce the company's competitive position in the market, allowing it to capitalize on technological trends and customer demands. The analysts' confidence in Silicon Labs is also buoyed by the company's positive outlook for sustained growth. This outlook is backed by the firm's strategic initiatives and its ability to innovate and adapt in a dynamic industry.
Silicon Labs has been focusing on expanding its presence in high-growth areas, including smart home technologies, industrial automation, and the Internet of Things (IoT). The company's design win pipeline suggests that it is securing significant projects that could translate into long-term revenue streams.
In conclusion, Benchmark's reiteration of a Buy rating with a $160.00 price target reflects a strong vote of confidence in Silicon Labs' current performance and future prospects. The company's recent earnings results, combined with its strategic advancements and favorable market position, support the analysts' positive outlook. Based on InvestingPro 's comprehensive analysis, which includes over 30 financial metrics and exclusive Fair Value calculations, the stock currently appears overvalued. Discover more insights and access the detailed Pro Research Report, available for Silicon Labs and 1,400+ other top stocks.
In other recent news, Silicon Labs reported first-quarter 2025 earnings that exceeded expectations, with revenue reaching $178 million, marking a 67% year-over-year increase. The company's earnings per share (EPS) came in at -$0.08, surpassing the forecast of -$0.09. Silicon Labs has provided guidance for the second quarter, projecting revenue between $185 million and $200 million, which suggests an 8% quarter-over-quarter and 32% year-over-year growth. Analysts from Benchmark, JPMorgan, Citi, and Stifel have weighed in on the company's performance. Benchmark and Stifel maintained Buy ratings with price targets of $160 and $144, respectively, while Citi adjusted its price target to $140 but kept a Neutral rating. JPMorgan reiterated an Overweight rating with a $160 price target, highlighting the company's strong performance in its Industrial & Commercial and Home & Life segments. The positive outlook is bolstered by Silicon Labs' momentum in new design wins and a reduction in channel inventories, which are expected to benefit revenue and gross margins. Despite potential macroeconomic challenges, Silicon Labs remains confident in its growth trajectory, supported by significant design wins and a focus on new product ramps.
Get The News You Want
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.