Silicon Motion price target lowered to $70 from $75 at Needham

Needham lowered the firm’s price target on Silicon Motion (SIMO) to $70 from $75 and keeps a Buy rating on the shares. The firm cites the company’s negative Q4 pre-announcement at the lower end of its original guidance while noting that the lower-than-expected results are primarily due to weak end demand conditions in the PC/SSD and smartphone segments as consumer discretionary spending remains under pressure, the analyst tells investors in a research note. Needham adds that overall, the holiday selling season for PCs and smartphones was weaker-than-expected.