**Stifel analysts maintain buy rating on SiTime stock citing growth potential**

Published 05/06/2025, 13:40
**Stifel analysts maintain buy rating on SiTime stock citing growth potential**

On Thursday, Stifel analysts reaffirmed their Buy rating for SiTime Corp. (NASDAQ: SITM), maintaining a price target of $210.00, with the stock currently trading at $202.78. According to InvestingPro data, analyst targets range from $135 to $275, reflecting mixed sentiment about the company’s growth prospects. The analysts expressed confidence in SiTime’s strategy, highlighting the company’s focus on building a profitable analog business model targeting fast-growing markets.

The analysts noted SiTime’s strong performance in the near term, with gross margins expected to remain between 57% and 60% and revenue projected to rebound by 41% year-over-year in 2024. They also anticipate a 36.6% year-over-year revenue growth in 2025. These projections align with InvestingPro data showing impressive revenue growth of 65.85% over the last twelve months, though the company currently maintains a high revenue valuation multiple. These projections are supported by increasing adoption of MEMS technology in key applications such as electric vehicles, data centers, and 5G networks.

Stifel analysts emphasized SiTime’s strategic acquisition of Aura Semi’s clock IC portfolio, which they believe will further enhance the company’s growth trajectory. This acquisition is expected to bolster SiTime’s position in high-value applications and drive significant top- and bottom-line performance.

Additionally, the analysts pointed out the promising trend in SiTime’s CED segment, which now accounts for nearly half of the company’s overall revenue. This diversification is seen as a positive indicator of SiTime’s growth across various attractive end markets.

Overall, Stifel analysts remain optimistic about SiTime’s potential for long-term success, citing its strategic initiatives and market positioning as key factors driving their positive outlook. Based on InvestingPro analysis, the stock appears overvalued at current levels, despite showing strong momentum with a 63.72% return over the past year. For deeper insights into SiTime’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, SiTime Corporation (NASDAQ:SITM) reported its first-quarter 2025 earnings, revealing a strong performance that exceeded Wall Street forecasts. The company achieved an earnings per share of $0.26, significantly surpassing the expected $0.11, while revenue reached $60.3 million, surpassing the anticipated $53.45 million. These results indicate an 83% year-over-year revenue increase, driven by growth in key segments such as communications and data centers. SiTime has also provided guidance for the second quarter, projecting revenue of $64.7 million, which suggests continued growth. In addition, shareholders of SiTime approved several key proposals at the company’s Annual Meeting, including the election of board members and executive compensation. The ratification of Deloitte & Touche LLP as the independent auditor for the fiscal year was also confirmed. These developments reflect shareholder confidence in SiTime’s corporate governance and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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