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On Thursday, Stifel analysts reiterated their Buy rating for Silicon Labs stock (NASDAQ: SLAB) with a price target of $144.00, representing potential upside from the current price of $125.33. The analysts expressed confidence that the company’s performance in the fourth quarter of 2023 marked a short-term low point. According to InvestingPro data, analyst targets for SLAB range from $100 to $160, with 9 analysts recently revising their earnings estimates upward. They believe Silicon Labs is well-positioned to capture significant growth opportunities in the Internet of Things (IoT) sector.
Despite a year-over-year revenue decline of 25.3% in calendar year 2024, following a 23.6% decline in 2023, the analysts noted that Silicon Labs has not experienced socket losses. Instead, the company continues to gain market share, even amid current market challenges. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 5.17 and more cash than debt on its balance sheet. Get access to 5 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
Stifel highlighted the company’s opportunities in areas such as Electronic Shelf Labeling, Smart Metering, and Continuous Glucose Monitoring. These sectors are expected to contribute to a projected year-over-year revenue improvement of 36.3% in calendar year 2025.
The analysts remain optimistic about Silicon Labs’ prospects, emphasizing its position as a leading pure-play IoT silicon supplier. They see the company benefiting from strong long-term growth trends in the IoT industry.
In other recent news, Silicon Labs reported earnings and revenue results that exceeded Wall Street estimates, with a 67% year-over-year revenue increase and a 7% rise from the previous quarter. The company’s guidance for the second quarter suggests sales between $185 million and $200 million, surpassing consensus estimates and indicating strong growth potential. Analysts from Benchmark maintained a Buy rating with a $160 price target, citing the company’s robust performance and strategic product advancements. Similarly, JPMorgan reaffirmed an Overweight rating with the same price target, highlighting significant design wins and a reduction in channel inventories. Stifel analysts raised their price target to $144 while maintaining a Buy rating, attributing the increase to strong product momentum.
Conversely, Citi maintained a Neutral rating but adjusted its price target from $138 to $140, reflecting Silicon Labs’ strong performance in the Home & Life and Industrial & Commercial segments. The company’s continued focus on expanding its design win pipeline in high-growth areas, including smart home technologies and IoT, has been emphasized by analysts. Despite potential macroeconomic challenges, analysts remain optimistic about Silicon Labs’ ability to sustain growth through strategic initiatives and innovation. These developments underscore the positive sentiment surrounding Silicon Labs’ future prospects among various analyst firms.
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