Oppenheimer analyst Rick Schafer maintained a Buy rating on Semtech (NASDAQ: SMTC) today and set a price target of $58. The company’s shares closed yesterday at $50.70, close to its 52-week high of $51.95.
Schafer commented:
“SMTC reports F2Q (July) earnings the close. We see upside vs. consensus sales/EPS of $161.2/$0.54E, led by LoRa and datacenter. We believe F3Q outlook should be at least in line with the Street’s $172.4/$0.60E, as China optical (PON, BST) has softened seasonally in 2H for SMTC the last few years. LoRa, DC and 2018 revenue) remain core areas of sustained DD (%) growth. LoRa standard is growing as the LPWAN-tech expands its use cases into a variety of IoT applications while adding new heavyweights to the LoRa alliance (recently Tencent). At June AD, mgmt shared plans to achieve $1B organic sales by 2022. We see continued margin and FCF expansion on improving mix. We’d remain buyers of this emerging growth/GM story with a $58 target.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 16.1% and a 70.2% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Advanced Micro Devices, Skyworks Solutions, and Texas Instruments.
Semtech has an analyst consensus of Strong Buy, with a price target consensus of $59.
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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 405.4K.
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.
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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.
