B.Riley FBR Believes Semtech (SMTC) Still Has Room to Grow


In a report released today, Craig Ellis from B.Riley FBR reiterated a Buy rating on Semtech (NASDAQ: SMTC), with a price target of $46. The company’s shares closed on Friday at $43.45, close to its 52-week high of $44.85.

Ellis noted:

“Semtech (SMTC) reports F1Q19 results into which we preview a modest beat versus Street PF F1Q19 and F2Q19 estimates. The backdrop is a seasonally soft F1Q which should benefit from broad-based F4Q order strength and an atypically low F1Q guidance turns requirement. More broadly, signs from Analog bellwether TXN and other on- cycle reporters suggest order momentum has persisted well into 2Q18, something affirmed with our analysis of high frequency monthly Taiwan Analog company sales. In summary, while demand crosscurrents exist, and though some sub-segments may not re-accelerate until late 2018, we see more positives than negatives across the Sensing groups.”

According to TipRanks.com, Ellis is a top 25 analyst with an average return of 37.9% and a 80.3% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Silicon Laboratories, Applied Materials, and Brooks Automation.

Currently, the analyst consensus on Semtech is Strong Buy and the average price target is $46.86, representing a 7.8% upside.

In a report issued on May 9, RBC Capital also upgraded the stock to Buy with a $50 price target.

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Semtech’s market cap is currently $2.88B and has a P/E ratio of 79. The company has a Price to Book ratio of 4.33.

Based on the recent corporate insider activity of 182 insiders, corporate insider sentiment is neutral on the stock.

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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. Its offers signal integrity, protection, wireless and sensing, and power and high-reliability products.

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