In a report released today, Quinn Bolton from Needham maintained a Buy rating on Semtech (NASDAQ: SMTC), with a price target of $60. The company’s shares closed yesterday at $49.90, close to its 52-week high of $51.95.
Bolton observed:
“Semtech reported solid F2Q19 results and provided better than expected F3Q19 guidance. Results were driven by strength in Protection products. LoRa revenue continue to track in line with the FY19 target of $80MM-$100MM. The Signal Integrity business grew Q/Q driven by continued strength in datacenter and increases in PON, base station and broadcast video products. The Q/Q growth in the Protection business was driven by a continued recovery in demand from its smartphone customers (with the exception of Samsung) and growth in its non-smartphone Protection products. Given the company’s continued execution of its growth strategy across its higher GM IoT , Datacenter and Protection products, we maintain our Buy rating and increase our PT from $55 to $60, based on an EV of 5.5x expected CY19 sales.”
According to TipRanks.com, Bolton is a top 100 analyst with an average return of 16.8% and a 67.7% 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.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Semtech with a $59.89 average price target, representing a 20.0% upside. In a report issued on August 23, Oppenheimer also assigned a Buy rating to the stock with a $58 price target.
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The company has a one-year high of $51.95 and a one-year low of $31.30. Currently, Semtech has an average volume of 410.6K.
Based on the recent corporate insider activity of 170 insiders, corporate insider sentiment is neutral on the stock. Last month, Marc Pegulu, the VP and GM of SMTC sold 500 shares for a total of $24,425.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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.
