Silicon Laboratories (SLAB) has reported its December quarter results and provided guidance for the March quarter, aligning closely with street expectations. Citi maintains a "Neutral" rating on the stock, raising the price target to $138 from $92, based on a 43x P/E multiple applied to the 2026E EPS of $3.22. The company anticipates sequential growth throughout 2025, driven by improvements in the Home & Life segment, particularly in continuous glucose monitoring, which is expected to constitute 10% of total revenue within 12-18 months. Additionally, growth in smart metering and electronic shelf labels is expected to bolster the Industrial & Commercial segment.
Citi's analysis highlights the potential for broad market strengthening and inventory corrections, with design win ramps playing a crucial role in the anticipated growth. However, the firm remains cautious, stating, "We remain believers in SLAB's Series 2/3 product cycle story and await to see clear signs of recovery in demand before turning constructive on the stock."
As of February 4, 2025, Silicon Laboratories' stock closed at $136.60, reflecting a 1.34% increase.