Silicom downgraded to Hold from Buy at Needham

Needham downgraded Silicom to Hold from Buy without a price target. The company had a soft Q2 and lowered its “already weak outlook, stretching the timeline for recovery,” the analyst tells investors in a research note. The firm says Silicom now expects the second half of 2024 to be below a “deeply depressed” first and only a slight recovery in a “still-depressed” 2025. Needham believes the company’s balance sheet strength is supporting the stock, but says its performance is “so poor” and the outlook is “so stretched” that it can no longer recommend the shares.