Silicon Motion valuation compelling, says Needham After Silicon Motion reported lower than expected Q4 results and provided weaker than expected Q1 guidance, Needham reduced its target on the shares to $20 from $23. However, the firm still sees a number of upcoming catalysts for the stock ,and it reiterates a Buy rating.
Silicon Motion downgraded to Underperform from Buy at BofA/Merrill BofA/Merrill downgraded Silicon Motion two notches to Underperform from Buy and lowered its price target to $19 from $37 on shares. The firm is more cautious on the memory chip sector given new developments of SK Group's "significantly higher capex budget" and Micron's unexpected FY16 capex hike. BofA/Merrill said excess capacity is now a concern and cut long-term earnings estimates for most memory chip stocks.
Silicon Motion upgraded to Overweight from Sector Weight at Pacific Crest Pacific Crest upgraded Silicon Motion to Overweight with a $32 price target based on growth opportunities and valuation. The firm is bullish on growth opportunities in client SSDs and greater market share, and views valuation as attractive.