SiTime Receives New Buy Rating from UBS with $260 Price Target

SiTime (SITM) received a new "Buy" rating from UBS with a $260 price target. The investment firm has set a price target of $260.00 USD. SiTime has seen varying analyst ratings over the past few months, indicating diverse market sentiment. The company is a provider of silicon timing systems solutions for different industries, including automotive, infrastructure, aerospace-defense, consumer, and internet of things.

SiTime (SITM) received a new "Buy" rating from UBS, with a price target of $260.00 USD. The investment firm has set a price target of $260.00 USD for the company, indicating a significant upside potential. SiTime has seen varying analyst ratings over the past few months, reflecting diverse market sentiment.

UBS analysts view SiTime as a disruptive force in the timing market, highlighting its silicon-based solutions and the growing demand for AI applications. The investment bank expects SiTime to become one of the fastest-growing semiconductor companies over the next few years, driven by its impressive year-over-year revenue growth and strong financial health. SiTime’s current 40% revenue growth is expected to continue at least through 2026 and likely beyond, with UBS projecting a path to approximately $5 earnings per share in calendar year 2027.

UBS believes current Wall Street estimates for SiTime are "considerably too low" given its multiple growth drivers, with the firm’s calendar year 2026 and 2027 earnings per share estimates running approximately 8% and 11% above consensus, respectively. The company’s strong and growing position with Apple, along with its unique high exposure to AI among peers in its market cap range, is expected to contribute significantly to its growth.

Recent financial results from CyTime Corporation, a competitor, also highlight the strong performance in the timing market. CyTime reported impressive financial results for the second quarter of 2025, significantly exceeding market expectations. The company achieved earnings per share of $0.47, surpassing the anticipated $0.21, and revenue for the quarter reached $69.5 million, which was 20.26% higher than the forecasted $57.79 million.

SiTime's stock has already demonstrated strong momentum, gaining nearly 70% over the past year and about 10% in the last week alone. The company’s recent acquisition of Aura further strengthens its position, making it the only company offering a complete range of MEMS-based timing solutions for complex, system-level clocking. UBS expects SiTime’s earnings to leap ahead of consensus, especially by 2027.

Institutional investors have also shown interest in SiTime, with several large investors, including Public Sector Pension Investment Board, LPL Financial LLC, JPMorgan Chase & Co., Wells Fargo & Company MN, and Bank of Montreal Can, increasing their holdings in the company. Additionally, insiders have sold a total of 46,783 shares of company stock valued at $9,708,517 over the last 90 days, indicating mixed sentiment among insiders.

UBS initiated coverage on SiTime with a Buy rating and a $260 price target, reflecting the investment bank’s optimism about the company’s growth prospects. The article was generated with the support of AI and reviewed by an editor. For more information, see our T&C.

References:
[1] https://www.investing.com/news/analyst-ratings/sitime-stock-initiated-with-buy-rating-at-ubs-on-ai-growth-potential-93CH-4190840
[2] https://www.theglobeandmail.com/investing/markets/stocks/UBS/pressreleases/34171520/rbc-capital-sticks-to-its-buy-rating-for-ubs-group-ag-ubs/
[3] https://finimize.com/content/sitime-shakes-up-chip-market-with-fresh-ai-momentum
[4] https://www.marketbeat.com/instant-alerts/filing-sitime-corporation-nasdaqsitm-stock-holdings-increased-by-public-sector-pension-investment-board-2025-08-14/