Cautious Hold on Silicon Laboratories Amid Inventory Recovery and Geopolitical Uncertainty

Morgan Stanley analyst Joseph Moore maintained a Hold rating on Silicon Laboratories (SLAB – Research Report) yesterday and set a price target of $141.00.

Joseph Moore has given his Hold rating due to a combination of factors including Silicon Laboratories’ ongoing recovery from an inventory correction and their ability to grow through new product introductions. The company has shown progress in its Industrial & Commercial and Home & Life segments, with notable quarter-over-quarter growth. Despite these positive developments, Moore remains cautious due to the potential indirect impacts of tariffs and the uncertainty surrounding long-term trade policies.
While Silicon Laboratories has managed to reduce its distribution channel inventory significantly, the visibility into future demand remains limited. The company does not foresee any immediate changes in customer forecasts or ordering patterns, but the geopolitical landscape could pose risks. As a result, Moore has decided to maintain a broadly unchanged forecast, reflecting a balanced view of the company’s current strengths and potential challenges.

In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $100.00 price target.