SILC - Silicom: A Clearer Projection Emerges For Investors

2024-02-07 02:38:29 ET

Summary

• Silicom Ltd. is likely to be unprofitable in 2024, with a return to profitability and double-digit growth in 2025.
• The company plans to refocus on smaller customers, thus diversifying its revenue to ensure more stability.
• Silicom remains attractively priced with a strong balance sheet to ride out short-term headwinds.

Updated Investment Thesis

When I previously wrote about Silicom Ltd. ( SILC ) in November, one of the primary risk factors I analyzed was a lack of visibility into what 2024 and beyond might look like. After the recent Q4 earnings call , the next couple of years for Silicom are coming into focus. That's the good news. The bad news is that SILC investors definitely aren't experiencing the rosiest of timelines....

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