Silicon Image (SIMG) shares are getting a boost this morning from Needham analyst Rajvindra Gill, who upgraded shares of the digital TV chip company’s stock to Buy from Hold, setting a price target of $5.50.
Gill thinks the company, which in particular is focused on HDMI interface technology,� will benefit from two long-term secular drivers:
- HDMI upgrade cycle in the digital TV market drive by 3D TV adoption, higher panel refresh rates and connected digital TVs.
- Penetration of mobile HDMI connectivity in the mobile handset market.
Gill upped his 2010 EPS view to 4 cents a share from break-even; for 2011, he goes to 24 cents, from 5 cents.
SIMG today is up 22 cents, or 6.3%, to $3.73.