Auriga Raises Price Target For Silicon Motion Technology Corp. (SIMO)

Analyst Jie Liu at Auriga has raised the price target for Silicon Motion Technology Corp. (ADR) (NASDAQ: SIMO) from $3.25 to $6 after the company raised its first-quarter guidance.

Auriga expects the company to return to profitability on a pro-forma basis in the first-quarter, and thinks that the stock should be valued on the company’s future earning power. The new price target is based on a multiple of 20x FY10 pro-forma EPS estimate of $0.30.

Auriga has maintained its Hold rating for Silicon Motion Technology Corp.