Silicon Labs Records First Annual Growth In Eight Quarters, Analyst Says Current Estimates Have 'Positive Bias'

Silicon Laboratories Inc SLAB has "worked through the bulk of excess industry and customer inventory levels," according to Benchmark.

The Silicon Laboratories Analyst: Analyst Cody Acree upgraded the rating for Silicon Laboratories from Hold to Buy, while raising the price target from $160 to $166.

The Silicon Laboratories Thesis: Although the company reported sequentially flat sales for the fourth quarter, it recorded the first year-on-year growth in eight quarters, Acree said in the upgrade note.

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"During the December quarter, SLAB saw progress as its customers excess inventory levels continue to deplete, with many reaching more normalized balances," he wrote.

Silicon Laboratories continued to witness an improvement in orders for new bookings and distribution POS, "which reinforces its view that demand for its products continues to make positive progress," the analyst stated. This, along with market share gains in connected medical, smart metering, and commercial retail, led management to project sequential growth through the remainder of 2025, he added.

"We believe its fundamentals are turning a corner and that its estimates should have a positive bias from this point forward through the breadth of the next industry up-cycle, which we expect to last through FY26," Acree further stated.

Price Action: Shares of Silicon Laboratories had risen by 6.35% to $145.28 at the time of publication on Wednesday.

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