Silicon Labs Analyst Downgrades Stock Citing Demand Slowdown, High Valuation - Silicon Laboratories (NASD

Needham analyst Rajvindra Gill downgraded Silicon Laboratories, Inc (NASDAQ:SLAB) from Buy to Hold.
For the past several months, he had been concerned about slowing consumer demand adversely affecting the Home and Life segment (46% of sales).
For Q4, he estimated Home and Life would decline 17% Q/Q after seven quarters of sequential growth.
As lead times come in, he expected an acceleration in order push-outs leading to outright cancellations.
His CY23 estimates factored a slowdown in home automation products like smoke alarms, security systems, smart lighting, cameras, hubs, and appliances.
He believed there could be added pressure if there is a slowdown in the housing market (residential and commercial) and if the consumer weakness spills over into enterprise spending.
Despite the contraction in valuation multiple, SLAB traded at a premium.
Keybanc analyst John Vinh maintained an Overweight and lowered the price target from $180 to $160.
Morgan Stanley analyst Craig Hettenbach maintained an Equal-Weight and lowered the price target from $161 to $151.
Barclays analyst Blayne Curtis maintained an Underweight and lowered the price target from $95 to $85.
Price Action: SLAB shares traded lower by 3.18% at $114.05 on the last check Thursday.

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