BofA upgrades Silicon Motion to Neutral on stock correction

BofA upgraded Silicon Motion (SIMO) to Neutral from Underperform with a price target of $47, down from $50. The stock has “overly corrected” after declining more than 40% since August 2024, the analyst tells investors in a research note. BofA remains concerned about Silicon Motion’s low exposure to enterprise solutions and a possible earnings miss due to potentially weaker smartphone and PC demand. However, its target not represents 19% upside potential, justifying a Neutral rating.