FBR Capital Markets Cuts Estimates/Price Target on Silicon Laboratories

FBR Capital Markets is out with a research report this afternoon, where it reiterates its Market Perform rating on Silicon Laboratories SLAB; it has a $35.00 price target on the stock, down from $42.00. The FBR analysts cited the company's recent earnings results, noting that results were in-line, but Q3 revenues were guided down to $113.5-120 million, which was noticeably weaker than expected. As for valuation, the analysts remarked, “We maintain our MP rating and cut our 2011E pro forma EPS from $2.05 to $1.70, our 2012E from $2.65 to $1.90, and our price target from $42 to $35, a 22x target P/E multiple of our 2012E EPS (including stock compensation), rich but appropriate given the firm's product portfolio.”