Bank of America has adjusted its stance on Silicon Motion (SIMO, Financial), raising its rating from Underperform to Neutral while revising its price objective to $47 from a previous $50. This change comes in light of the stock’s significant fall, having taken a hit of over 40% since August 2024.
The analyst noted that despite these challenges, the stock has experienced an excessive correction. However, concerns persist about Silicon Motion's limited penetration in enterprise markets and a potential earnings shortfall, possibly triggered by declining demand in the smartphone and PC sectors.
Despite these issues, the new target suggests a promising 19% upside, providing grounds for maintaining a Neutral rating on the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Silicon Motion Technology Corp (SIMO, Financial) is $74.13 with a high estimate of $90.00 and a low estimate of $50.00. The average target implies an upside of 75.24% from the current price of $42.30. More detailed estimate data can be found on the Silicon Motion Technology Corp (SIMO) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Silicon Motion Technology Corp's (SIMO, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Silicon Motion Technology Corp (SIMO, Financial) in one year is $64.79, suggesting a upside of 53.17% from the current price of $42.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Silicon Motion Technology Corp (SIMO) Summary page.
