Morgan Stanley raised estimates and reiterates overweight on Silicon Labs (SLAB).
Analyst Mark Edelstone believes wireless revenues will lead to another quarter of explosive sequential revenue growth and positive a earnings per share surprise. He notes 13 customers have designed over 30 products with the company's Aero transceiver, and full-type approval has already been granted to eight different products.
Given the solid execution, and the company's first-of-a-kind product portfolio, he thinks growth will remain explosive and drive the stock price significantly higher.
Edelstone raised his $0.22 2002 EPS estimate to $0.25, and upped the $0.53 estimate to $0.57. He has a $50 target, and maintains his attractive view of the semiconductor industry as a whole.