Quinn Bolton, an analyst from Needham, maintained the Buy rating on Silicon Laboratories. The associated price target remains the same with $150.00.
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Quinn Bolton has given his Buy rating due to a combination of factors including a stronger gross margin outlook and improved earnings per share forecast for fiscal year 2026. Silicon Laboratories reported a slight beat in their recent results and provided a mixed outlook for the fourth quarter of 2025, with revenue guidance slightly below expectations but earnings per share guidance significantly ahead due to a better-than-expected gross margin.
The company’s gross margin for the fourth quarter of 2025 was guided to 63.0% at the midpoint, surpassing the market’s estimate of 57.6%, partly due to a one-time credit. Looking forward, management expects gross margins to stabilize around 60-61% as new high-margin programs are introduced. Additionally, customer inventory levels have normalized, allowing the company to align shipments with actual demand. As Silicon Laboratories heads into 2026, it anticipates continued market outperformance, supporting the Buy rating.