In a report released today, Quinn Bolton from Needham maintained a Hold rating on Semtech (SMTC). The company’s shares closed yesterday at $48.14.
Bolton said:
“SMTC reported solid F3Q19 results driven by strength in Wireless & F4Q19 guidance fell short due to weakness in the smartphone and legacy businesses.While the LoRa business remains on track to meet FY19 deployment milestones, FY19 LoRa revenue is now tracking at the low end of the $80MM-$100MM range. Protection sales grew 15% but are expected to see a stronger than seasonal Q/Q decline in F4Q19 due to widespread smartphone weakness. We maintain our Hold rating and lower our F4Q19 and FY20 revenue and EPS ests modestly to reflect a slightly lower LoRa growth rate and weak smartphone shipments in FY20. While SMTC’s valuation is beginning to look more attractive at these levels, we remain cautious in the near term due to recent industry weakness.”
According to TipRanks.com, Bolton is a 5-star analyst with an average return of 12.5% and a 61.5% 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.
Semtech has an analyst consensus of Strong Buy, with a price target consensus of $58.50.
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The company has a one-year high of $60.55 and a one-year low of $31.30. Currently, Semtech has an average volume of 549.8K.
Based on the recent corporate insider activity of 152 insiders, corporate insider sentiment is negative 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. It offers signal integrity, protection, wireless and sensing, and power and high-reliability products.
