My employer

Buy - Price 32.03 on Feb. 12
by Jefferies & Co.

Target: 43. SLAB announced that its FM transmitter is [to be] designed into new handsets introduced by two top [original-equipment manufacturers]...likely the Nokia N78 and Sony Ericsson W980. We believe [this] signals...it likely has more design wins at Nokia...we [see] a window of opportunity for discrete FM products. We believe [this is] a rare opportunity to invest in a semiconductor firm with a unique combination of strong analog-equivalent gross margins of 60% to 62%, sustainable product-cyclelike revenue growth and diversifying customer base. Market-cap: $1.7 billion.

Silicon Labs (SLAB) was downgraded from Buy to Hold, Citigroup said. $44 price target. Stocks seems to be pricing in margin gains and the buyback program.

Buy - Price 39.71 on Sept. 13
by Jefferies & Co.
Silicon Labs is one of the few semi companies in our coverage universe that combines sustainable product cycle-like revenue growth (15-20% y/y) with the margin profile (60% to 62%) and product/customer diversification of an analog company. Our target of 49 is based on 30 times our [calendar-year] '08 EPS estimate of $1.62....Risks to our thesis include slower adoption of broadcast-radio products, slower penetration of the [videoconference switching] market, and a falloff in modem revenue....We view Silicon Labs largely as a share-gain story.

Silicon Laboratories is buying back 400 million dollar of their own stock. That is more than 20% of outstanding shares. The stock should move at least 20% upward.

0.1 to 0.34

Gotta go eventually

One Month Change in EPS Estimate: 1%

Upgraded by Piper Jaffray from Market Perform to Outperform

good IP position and strong growth