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Cautious Hold on Silicon Laboratories Amid Mixed Performance and Uncertain Market Recovery

Cautious Hold on Silicon Laboratories Amid Mixed Performance and Uncertain Market Recovery

Silicon Laboratories (SLABResearch Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Christopher Rolland from Susquehanna reiterated a Hold rating on the stock and has a $130.00 price target.

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Christopher Rolland has given his Hold rating due to a combination of factors influencing Silicon Laboratories’ outlook. The company reported results that aligned with expectations and presented a slightly optimistic top-line forecast, driven by specific growth opportunities, particularly in the ‘idio’ sector. However, the Industrial & Commercial segment performed below expectations as customers continued to deplete excess inventory, particularly in European markets where industrial PMIs indicate ongoing challenges. Although demand stabilization in applications like Electronic Shelf Labeling and Smart Metering provides some positive momentum, broader market recovery is still anticipated. Additionally, while Silicon Labs is making strides in expanding market share across various applications, including Bluetooth and Wi-Fi 6 innovations, challenges such as limited visibility due to shorter lead-times remain. The company is strategically positioned for growth in 2025, but the timing of a market recovery remains uncertain, prompting a cautious Hold stance.

In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $132.00 price target.

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