FBR Reiterates Market Perform Rating, $38 PT on Silicon Laboratories

In a report published Monday, FBR & Co. reiterated its Market Perform rating and $38.00 price target on Silicon Laboratories

. FBR noted, “We remain on the sidelines with SLAB shares as the firm still has meaningful exposure to legacy (8%–16% of revenues) and mature (23% of revenues) product areas, with other revenue exposure in volatile markets like LCD TV tuners, and with shares still richly valued at a P/E of 21x (2012 including stock compensation). SLAB shares seem fully valued here and already discount solid go-forward growth in various products, and we thus prefer other growth stocks like BRCM or value/beta stocks like FCS and ONNN. We remain believers that Silicon Labs' proprietary product offering and immense engineering talent should eventually translate into substantial broad-based revenue and earnings growth in coming years, though much growth already seems discounted in shares.” Silicon Laboratories closed on Friday at $36.00.