Silicon Motion Technology Coverage Initiated at Bank of America Corp. (SIMO)
Analysts at Bank of America Corp. initiated coverage on shares of Silicon Motion Technology (NASDAQ:SIMO) in a research report issued to clients and investors on Friday, AR Network reports. The firm set a “buy” rating and a $21.00 price target on the stock. Bank of America Corp.’s price target indicates a potential upside of 44.43% from the company’s current price.
The analysts wrote, “We initiate Silicon Motion (SIMO US) with a Buy rating. Our $21.0 price objective (up-cycle FV, implied 15x P/E for 2015E, and 22x for 2014E) presents 45% potential upside. Our thesis is based on the NAND theme: pure name, strong growth, less cyclical, tech leadership, etc. We view SIMO as similar to SanDisk (+52% YTD). We are positive on NAND, which will continue to be used in smartphones, tablets, SSD, etc. SIMO supplies NAND controller chips to Samsung (biggest customer), Hynix and various OEMs/module makers. A controller optimizes NAND functions (eg, eMMC in smartphones). TSMC/SMIC are key foundries for SIMO. Samsung also uses SIMO’s RF transceiver for its LTE AP (4G Exynos).”
Silicon Motion Technology (NASDAQ:SIMO) opened at 14.54 on Friday. Silicon Motion Technology has a 1-year low of $9.90 and a 1-year high of $16.19. The stock’s 50-day moving average is $12.85 and its 200-day moving average is $11.63. The company has a market cap of $478.1 million and a P/E ratio of 16.50.
Silicon Motion Technology (NASDAQ:SIMO) last announced its earnings results on Friday, October 25th. The company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.09. The company had revenue of $57.13 million for the quarter, compared to the consensus estimate of $57.99 million. During the same quarter in the prior year, the company posted $0.54 earnings per share. The company’s quarterly revenue was down 25.9% on a year-over-year basis. Analysts expect that Silicon Motion Technology will post $0.97 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on SIMO. Analysts at Topeka Capital Markets raised their price target on shares of Silicon Motion Technology from $13.50 to $16.00 in a research note to investors on Friday, October 4th. They now have a “buy” rating on the stock. Analysts at Zacks upgraded shares of Silicon Motion Technology from an “underperform” rating to a “neutral” rating in a research note to investors on Wednesday, August 28th. They now have a $11.40 price target on the stock. Three equities research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $18.10.
Silicon Motion Technology Corporation (NASDAQ:SIMO) is a fabless semiconductor company that designs, develops and markets semiconductor solutions for the multimedia consumer electronics market.
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