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On Wednesday, Silicon Labs shares (NASDAQ:SLAB) saw an uptick, climbing 6% following the company’s financial report for the March quarter, which met analysts’ expectations, and provided guidance for the June quarter that was slightly above consensus. The increase extends the company’s strong recent performance, with InvestingPro data showing a remarkable 22.9% gain over the past week and 27.4% over six months. The increase in share price comes as the tech company forecasts a steady improvement in order patterns and does not anticipate any demand surge due to tariffs. According to InvestingPro analysis, the stock’s RSI indicates overbought territory.
Citi analyst maintained a Neutral rating on Silicon Labs but increased the price target from $138.00 to $140.00. The adjustment reflects the company’s strong performance, particularly in its Home & Life and Industrial & Commercial segments, which are expected to drive growth through design win ramps, especially in the Series 2 product line.
Silicon Labs management expressed confidence in the company’s ability to outperform the semiconductor industry, reiterating the 20% compound annual growth rate (CAGR) target announced during the Investor Day in March. This optimism is based on the company’s ability to gain market share and translate it into increased design wins.
The firm’s analysts have adjusted their earnings per share (EPS) estimates for the calendar years 2025 and 2026 to $0.48 and $3.27, respectively. The new price target of $140 is based on a consistent price-to-earnings (P/E) ratio of 43 times the projected CY26 EPS. Despite the positive outlook on the company’s growth prospects, Citi’s stance remains cautiously neutral regarding the stock’s valuation.
In other recent news, Silicon Labs reported its Q1 2025 earnings, exceeding expectations with an earnings per share (EPS) of -$0.08, surpassing the forecasted -$0.09. The company’s revenue also outperformed projections, reaching $178 million compared to the anticipated $175.7 million, marking a significant 67% year-over-year increase. Silicon Labs also improved its gross margin to 55.4% on a non-GAAP basis. Looking ahead, the company projects Q2 2025 revenue to range between $185 million and $200 million, anticipating a 32% year-over-year growth. Stifel analysts recently raised the price target for Silicon Labs to $144, up from $120, while maintaining a Buy rating, citing the company’s strong product momentum and financial performance. The analysts expressed confidence in Silicon Labs’ growth trajectory, supported by multiple product ramps and solid results. Silicon Labs introduced new Bluetooth Low Energy SoCs and Matter devices, further positioning itself in the competitive IoT market.
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