Silicon Labs stock target lifted to $144 by Stifel analysts

On Tuesday, Stifel analysts increased the price target for Silicon Labs (NASDAQ:SLAB) to $144.00, up from the previous $120.00, while reaffirming a Buy rating on the company’s shares. The revision follows Silicon Labs’ recent performance, which included a robust financial report and upward revision of their guidance. The company, currently valued at $4.2 billion, has shown impressive momentum with an 18.37% return over the past week. According to InvestingPro analysis, the stock appears overvalued at its current price of $129.88, though analysts remain optimistic about its prospects.

The company’s success has been attributed to the strong momentum of multiple product ramps in the first half of the year. Stifel’s analysts noted this positive development, highlighting that Silicon Labs has consistently delivered solid results. The company maintains a healthy financial position with a strong current ratio of 6.15 and an impressive gross profit margin of 53.42%. InvestingPro data reveals several more key metrics and insights available to subscribers, including detailed analysis of the company’s financial health and growth prospects.

In their commentary, the analysts stated, "Once again, SLAB delivered a solid print and guidance raise supported by the company’s multiple product ramps which continue to build positive momentum in the 1H of the year." The new price target of $144 represents a 4.5x CY26E EV/Sales multiple, indicating confidence in the company’s growth trajectory over the next twelve months. This optimism is supported by InvestingPro forecasts, which project a substantial 35% revenue growth for FY2025, with analysts expecting the company to return to profitability this year.

Silicon Labs’ performance and the raised guidance have clearly instilled confidence in Stifel’s outlook for the company. The analysts’ decision to maintain a Buy rating alongside the increased price target suggests they believe the stock has further room to grow.

Investors and market watchers will likely keep a close eye on Silicon Labs as it continues to execute on its product strategies and capitalize on market opportunities, as indicated by the analyst’s positive remarks and the revised price target.

In other recent news, Silicon Labs reported its Q1 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of -$0.08, beating the forecast of -$0.09. Revenue reached $178 million, exceeding the projected $175.7 million and marking a significant 67% year-over-year increase. Silicon Labs’ gross margin improved to 55.4% non-GAAP, and the company has issued guidance for Q2 2025, projecting revenue between $185 million and $200 million. This guidance suggests a 32% year-over-year growth, with expected gross margins between 55% and 57%.

Additionally, the company introduced new Bluetooth Low Energy SoCs and Matter devices, positioning itself well in the competitive Internet of Things (IoT) market. Silicon Labs’ CEO, Matt Johnson, emphasized the company’s strategic focus on outperforming the broader semiconductor market through design win ramps. The company also reported a non-GAAP operating loss of $7 million and ended the quarter with $425 million in cash and equivalents. These developments reflect Silicon Labs’ robust performance and strategic direction in the semiconductor industry.

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