After Oppenheimer and B.Riley FBR gave Semtech (NASDAQ: SMTC) a Buy rating last month, the company received another Buy, this time from Needham. Analyst Quinn Bolton reiterated a Buy rating on Semtech today and set a price target of $55. The company’s shares closed yesterday at $50.10, close to its 52-week high of $51.40.
Bolton said:
“We attended Semtech’s analyst day where management provided an upbeat outlook for its future growth drivers and increased the expected profitability in its long-term operating model. The company’s LoRa business remains on track to reach management’s FY19 targets and is poised to become the dominant LPWAN standard in our opinion. In Signal Integrity, SMTC sees growing opportunities in its CDR platforms and Pro AV solutions. The Protection business continues to see demand from an expanding set of customers and end markets as new technologies demand increasing ESD protection. Reflecting the company’s increased LT profitability targets and its diversified growth opportunities, we reiterate our Buy rating and increase our PT to $55 from $50 to reflect an EV of 5.1x expected CY19 sales.”
According to TipRanks.com, Bolton is a top 100 analyst with an average return of 18.0% and a 70.2% 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 Strong Buy and the average price target is $54.57, representing an 8.9% upside.
In a report released today, B.Riley FBR also maintained a Buy rating on the stock with a $68 price target.
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Semtech’s market cap is currently $3.31B and has a P/E ratio of 91.09. The company has a Price to Book ratio of 4.78.
Based on the recent corporate insider activity of 186 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. It offers signal integrity, protection, wireless and sensing, and power and high-reliability products.
