Silicon Laboratories: Strong Performance and Promising Outlook Justify Buy Rating with $150 Price Target

Silicon Laboratories (SLAB – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Quinn Bolton from Needham maintained a Buy rating on the stock and has a $150.00 price target.

Quinn Bolton has given his Buy rating due to a combination of factors that highlight Silicon Laboratories’ strong performance and promising outlook. The company has reported impressive results, surpassing expectations with robust product launches across its segments. This success is reflected in management’s confidence, as they maintain a positive forecast for fiscal year 2025, anticipating over 20% year-over-year growth, with minimal impact from tariffs.
Another key reason for the Buy rating is the company’s improved gross margins, which have exceeded expectations due to a favorable product mix and stable pricing. Additionally, the second half of the year is expected to see growth driven by design wins in areas like smart metering, continuous glucose monitors, and electronic shelf labels. Furthermore, Silicon Laboratories has demonstrated effective inventory management, contributing to a stable financial outlook. Based on these factors, the price target is set at $150, reflecting a valuation of 35 times the estimated non-GAAP earnings per share for calendar year 2027.

Bolton covers the Technology sector, focusing on stocks such as Vicor, D-Wave Quantum, and Intel. According to TipRanks, Bolton has an average return of 15.8% and a 50.30% success rate on recommended stocks.

In another report released on May 8, Stifel Nicolaus also reiterated a Buy rating on the stock with a $120.00 price target.