In a report released yesterday, Rick Schafer from Oppenheimer maintained a Buy rating on Semtech (NASDAQ: SMTC), with a price target of $58. The company’s shares closed yesterday at $50.10, close to its 52-week high of $51.40.
Schafer noted:
“We attended Semtech AD in New York Wednesday. Tone of the meeting was bullish as CEO Mohan Maheswaran laid out his plan to achieve $1B in organic sales by 2022. SMTC’s SAM is growing at an 18% 2022E, led by core Wireless & Sensing (23% expected Protection (11%). We see growth driven by a diverse set of solutions including LoRa, 100G CDR and Z-Ultra protection. LoRa is growing as the LPWAN tech expands its reach into myriad applications. Mgmt sees continued margin and FCF expansion, with CFO Emeka Chukwu increasing his OM target to 32%-36% vs. prior 28%-32%. We’d remain long-term buyers of this emerging growth/GM story and are raising our target from $50 to $58.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 17.1% and a 72.8% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as NXP Semiconductors, Skyworks Solutions, and Texas Instruments.
Semtech has an analyst consensus of Strong Buy, with a price target consensus of $52.29.
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Based on Semtech’s latest earnings release for the quarter ending April 30, the company reported a quarterly net profit of $12.38 million. In comparison, last year the company had a net profit of $11.82 million.
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.
