Needham analyst Quinn Bolton reiterated a Buy rating on Semtech (NASDAQ: SMTC) today and set a price target of $50. The company’s shares closed yesterday at $45.30, close to its 52-week high of $45.50.
Bolton wrote:
“Semtech reported F1Q19 results and F2Q19 guidance slightly above expectations. Semtech’s execution was led by continued momentum across IoT , Datacenter and Mobile markets. LoRa is tracking in-line to- slightly ahead of the $80MM-$100MM FY19 revenue target. The Signal Integrity business grew Q/Q driven by continued strength in datacenter and better than expected revenue in the PON and base station businesses, which led to positively revised FY19 forecasts for both businesses. Having recently announced its PAM-4 Tri-Edge CDR family, which may obviate the need for a DSP , SMTC announced it will no longer acquire MultiPhy. As SMTC’s FY19 growth engines remain on track, we remain confident in the company’s outlook. We reiterate our Buy rating and increase our PT from $45 to $50, based on an EV of 4.7x expected CY19 sales.”
According to TipRanks.com, Bolton is a top 100 analyst with an average return of 17.3% and a 69.5% 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.
Currently, the analyst consensus on Semtech is Strong Buy and the average price target is $49.57, representing a 9.4% upside.
In a report issued on May 21, B.Riley FBR also reiterated a Buy rating on the stock with a $46 price target.
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The company has a one-year high of $45.50 and a one-year low of $31.30. Currently, Semtech has an average volume of 662.5K.
Based on the recent corporate insider activity of 181 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.
