SLAB: Model Update

研报英文原文证据摘录

SLAB: Model Update

Silicon Laboratories Inc

Target/Upside/Downside Scenarios Investment summary

SLAB stock lagged the SOX index last year as cyclical recoverySilicon Laboratories Inc

in broader IoT markets was generally in line with expectations.

260 125 Weeks 19DEC23 - 08MAY26 We expect ongoing channel inventory normalization and

240 new products to help sustain double-digit growth in 2026.

220 CURRENTCURRENT 217.45217.45

200 TARGETTARGET 205.00205.00 Continuous Glucose Monitors (CGM) are a key near-term

180 driver while Smart Metering and Electronic Shelf Labeling

140 (ESL) applications present additional secular tailwinds. While

120 we see enough drivers for SLAB to sustain double-digit growth

80 longer term, we'd wait to see more material contribution

60 from new products such as CGM and WiFi before getting

15m constructive.

10m

5m

2024 2025 2026 D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M Risks to rating and price target

SLAB US Rel. S&P 500 COMPOSITE MA 40 weeks • Failure to receive China SAMR approval: Both SLAB and TXN

Source: Bloomberg and RBC Capital Markets estimates for Target have 15-20% exposure to China and will likely need China

Valuation SAMR approval. Failure to receive approval could result in

Our base case price target of $205 reflects a ~70% probability the deal failing to close or closing beyond expected 1H27

that the transaction will close by 1H27. We believe our price timeframe.

target adequately reflects regulatory uncertainty and deal

timing. Our price target justifies a Sector Perform rating. • Other bidders: Any additional offers from other bidders

could warrant a higher price target. That said, we are not

Upside scenario expecting any offers given the current significant premium.