Semtech Received its Third Buy in a Row

After RBC Capital and B.Riley FBR gave Semtech (NASDAQ: SMTC) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Rick Schafer assigned a Buy rating to Semtech yesterday and set a price target of $50. The company’s shares closed yesterday at $43.75, close to its 52-week high of $44.85.

Schafer noted:

“SMTC reports F1Q (April) on Wed (5/30). We see a beat/raise setup vs. consensus F1Q sales/EPS of $150.4M/$0.46E and F2Q (July) $160.3M/$0.53E, respectively, led by top growth drivers LoRa, DC and Protection (combined ~2/3 of 2018 revenues). LoRa is the main attraction, posting $42M last year and on track to at least double to $80-$100M this year as new and existing customers expand deployments. Recent peer DC demand commentary has been bullish and we see upside for SMTC led by 100G CDR. Seasonal inventory adjustments at #1 customer Samsung likely weigh on F2Q protection sales, though rebounding China smartphone demand should provide some offset. We remain long-term buyers of this emerging growth story and are raising our target from $42 to $50.”

According to TipRanks.com, Schafer is a top 100 analyst with an average return of 16.7% and a 70.7% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as NXP Semiconductors, Skyworks Solutions, and Texas Instruments.

Currently, the analyst consensus on Semtech is Strong Buy and the average price target is $46.86, representing a 7.1% 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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The company has a one-year high of $44.85 and a one-year low of $31.30. Currently, Semtech has an average volume of 649.3K.

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.