Market Overview

Analyst: Silicon Motion Technology's Near-Term Prospects Already Backed Into Estimates

Analyst: Silicon Motion Technology's Near-Term Prospects Already Backed Into Estimates

While Silicon Motion Technology Corp. (NASDAQ: SIMO) has favorable near-term customer tailwinds and may generated meaningful earnings growth over the intermediate term, the estimates for the back half of 2019 already reflect its favorable momentum, according to Wedbush.

The Analyst

Wedbush’s Matt Bryson initiated coverage of Silicon Motion Technology with a Neutral rating and a price target of $39.

The Thesis

Although near-term momentum appears favorable for Silicon Motion Technology, there are potential macro concerns and future customer risk that could impact performance in 2021, Bryson said in the note.

Heading into the fourth quarter, fundamentals appear more favorable than earlier and many of the risks the company had been facing seem to be in the rearview mirror, the analyst mentioned.

He added that there is “some probability for special situations upside,” considering the demand for application-specific integrated circuit design teams and a lack of merger and acquisition targets due to the substantial consolidation that has already taken place in the semiconductor space.

Bryson said, however, that a more constructive stance on the stock is prevented by Silicon Motion Technology’s aggressive guidance for the second half of 2019 and concerns around the impact of macro conditions beyond 2020.

Related Links

Benzinga's Top Upgrades, Downgrades For October 7, 2019

Stocks That Hit 52-Week Lows On Wednesday

Latest Ratings for SIMO

Oct 2019Initiates Coverage OnNeutral
Oct 2019UpgradesReduceNeutral
Aug 2019DowngradesOverweightNeutral

View More Analyst Ratings for SIMO
View the Latest Analyst Ratings

Posted-In: Matt Bryson WedbushAnalyst Color Price Target Initiation Analyst Ratings Tech


Related Articles (SIMO)

View Comments and Join the Discussion!

Latest Ratings

WEEDMKM PartnersMaintains30.0
NKTRH.C. WainwrightMaintains32.0
GOODNational SecuritiesInitiates Coverage On25.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Acreage CEO Kevin Murphy: Drop In Cannabis Stocks Isn't The End Of The Run

15 Stocks Projected To Have The Biggest 5-Year EPS Declines