SiTime Corporation Receives Buy Rating from UBS Analyst with $260 Price Target

SiTime Corporation received a Buy rating and $260 price target from UBS analyst Timothy Arcuri. The company reported a quarterly revenue of $60.31 million and a GAAP net loss of $23.88 million. Corporate insider sentiment is negative with 103 insiders selling shares over the past quarter.

UBS analyst Timothy Arcuri has initiated coverage on SiTime Corporation (NASDAQ: SITM) with a Buy rating and a $260 price target. This bullish stance reflects the investment bank's confidence in SiTime's robust growth prospects, particularly in the data center segment and its expanding product portfolio.

During SiTime's Q2 2025 earnings call, the company reported impressive revenue growth of 58% year-over-year, reaching $69.5 million. The data center segment stood out, growing by 137% year-over-year, driven by the success of the Elite family of products and the Cascade clocking family. Earnings per share (EPS) also improved, rising to $0.47 from $0.12 a year ago, reflecting the company's operational efficiency and ability to translate revenue growth into shareholder value [1].

UBS highlighted SiTime's strong financial position, noting that the company ended Q2 with $796.7 million in cash and short-term investments, and no debt. The company also completed a follow-on public offering, raising $388 million, further bolstering its financial standing. Looking ahead, SiTime anticipates sequential revenue growth in Q3 and Q4, driven by strong demand in AI infrastructure. The company has set a revenue guidance for Q3 between $77 million and $79 million, underscoring its confidence in sustained growth [2].

UBS also praised SiTime's expanding product portfolio, which includes the recently introduced Symphonic mobile clock generator chip, expected to contribute significantly to revenue in 2026 and beyond. The investment bank's forward-looking guidance for Q3 2025 projects revenue between $77 million and $79 million, with gross margins expected to be between 58% and 59%, signaling a robust growth trajectory.

While SiTime faces challenges in the consumer and automotive sectors, the company projects long-term gains in these areas, indicating a balanced approach to managing sector-specific challenges. The company reported non-GAAP operating expenses of $33.3 million for the quarter, reflecting significant investments in R&D and SG&A, further underscoring its focus on innovation and market expansion.

In conclusion, UBS's initiation of coverage on SiTime with a Buy rating and a $260 price target reflects the investment bank's confidence in the company's growth prospects, particularly in the data center segment and its expanding product portfolio. With substantial revenue growth, strategic expansions, and a strong financial position, SiTime is well-positioned to capitalize on emerging opportunities and navigate sector-specific challenges.

References:
[1] https://www.ainvest.com/news/ubs-initiates-coverage-sitime-buy-rating-260-price-target-2508/
[2] https://www.ainvest.com/news/sitime-silicon-solutions-disrupting-timing-devices-market-ubs-insights-2508/