Silicon Motion upgraded to Buy at B. Riley on positives from Q4 report

As previously reported, B. Riley upgraded Silicon Motion to Buy from Neutral with a price target of $90, up from $64. Following Tuesday’s Q4 report and guidance and Wednesday’s pre-market conference call, the firm points to four items that “catalyze the positive evolution” of its investment thesis. Namely, positives in management’s calendar year 2024 outlook add up to a much larger serviceable addressable market inside memory’s rising controller total addressable market; NAND output cutbacks and rising NAND pricing are boosting channel restocking demand; NAND controller outsourcing is “finally taking another material step higher across virtually all OEMs” and Silicon Motion is materially benefiting with new program wins; and the firm expects consensus EPS to rise through 2024 as new programs kick in, the analyst tells investors.