Silicon Motion price target lowered to $106 from $120 at Craig-Hallum

Craig-Hallum analyst Anthony Stoss lowered the firm’s price target on Silicon Motion (SIMO) to $106 from $120 and keeps a Buy rating on the shares. Since MaxLinear’s (MXL) offer over a year ago to purchase Silicon Motion, the stock has been volatile on the continued decline of Chinese-U.S. relations and uncertainty around Chinese regulatory approval. The deal terms call for an August 7th deadline, otherwise MaxLinear could owe Silicon Motion $160M. The stock is trading as if SAMR will not approve the acquisition, leaving an attractive arbitrage play as shares are trading nearly 50% off the deal price, the firm adds.