In a report released today, Quinn Bolton from Needham downgraded Semtech (NASDAQ: SMTC) to Hold. The company’s shares closed on Friday at $59.75, close to its 52-week high of $60.05.
Bolton noted:
“With strong contributions YTD in 2018 from all of its growth segments, including LoRa transceivers, data center CDRs and protection devices, and better than expected sales of its PON and base station solutions, SMTC shares are up 74.7% YTD vs. 9.9% for the S&P500 Index. SMTC shares closed $59.75, only $0.25 from our recently raised PT of $60. SMTC shares currently trade at an enterprise value of 5.5X expected CY19 sales and at a 22.5x P/E multiple of expected CY19 NG EPS. SMTC now trades at a premium to many of its analog/mixed- signal peers and near valuation levels at which peer IDTI may be acquired according to reports from Nikkei Asian Review. At current valuation levels, we see the risk/reward profile as more balanced. Accordingly, we downgrade the shares to Hold from Buy.”
According to TipRanks.com, Bolton is a top 100 analyst with an average return of 17.4% and a 67.8% success rate. Bolton covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, Sequans Communications S A, and Quantenna Communications.
Currently, the analyst consensus on Semtech is a Strong Buy with an average price target of $64.50.
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The company has a one-year high of $60.05 and a one-year low of $31.30. Currently, Semtech has an average volume of 453.7K.
Based on the recent corporate insider activity of 165 insiders, corporate insider sentiment is neutral on the stock. Most recently, in July 2018, Marc Pegulu, the VP and GM of SMTC sold 500 shares for a total of $24,425.
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Semtech Corp. engages in the manufacture and supply of analog and mixed signal semiconductor products for high-end consumer, enterprise computing, communications, and industrial equipment. It offers signal integrity, protection, wireless and sensing, and power and high-reliability products.
