Is GPS Chipmaker SiRF Technology Back on Track?

SiRF Technology (SIRF) seems to have shaken off its previous lows after reporting disappointing numbers on July 25th. I wrote back then to keep an eye on SiRF. After reaching its 52-week low of $18.20, the stock has recovered nicely and closed Thursday at $24.11.

The Associated Press also had an article out today with the headline, SiRF Rises As Competition Worries Fall. The article quotes Jeffries analyst Adam Benjamin in a note to his clients saying:

Based upon our checks, we believe SiRF secured the design win for this product, maintaining its status as the sole source for TomTom for the GPS baseband.

The product he is talking about is called ‘Go One’ by Netherlands-based GPS manufacturer TomTom. Adam also maintained a BUY rating and price target of $31.

Although I again missed out buying in the teens, I am going to look to start buying in small chunks now.

SIRF 1-yr chart: