In a report released today, Rick Schafer from Oppenheimer maintained a Buy rating on Semtech (SMTC), with a price target of $60. The company’s shares closed yesterday at $48.14.
Schafer wrote:
“SMTC reported F3Q(Oct) earnings Wednesday. Sales/EPS of $174M/$0.63 beat consensus $173M/$0.61. F4Q(Jan) outlook of $160M/$0.55 came up short of Street $166M/$0.56 reflecting well publicized global smartphone weakness. We believe the magnitude of the cut was less than feared as SMTC’s high profile, high growth LoRa segment continues to meet/exceed milestones and is on track to roughly double this year and next. Another plus was continued datacenter strength, an area closely watched after MXIM highlighted 100G optical as a soft-spot. BST (tied to 5G builds) showed encouraging signs after years treading water. Near term, SMTC and the semi group remain under a cloud of macro uncertainty and early stage correction. Long- term we like SMTC’s expanding growth/GM profile led by LoRa, DC and protection (combined ~2/3 of sales).We reiterate our Outperform.”
According to TipRanks.com, Schafer is a 5-star analyst with an average return of 13.5% and a 65.2% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.
Currently, the analyst consensus on Semtech is a Strong Buy with an average price target of $58.25, representing a 21.0% upside. In a report issued on November 16, Robert W. Baird also reiterated a Buy rating on the stock with a $50 price target.
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The company has a one-year high of $60.55 and a one-year low of $31.30. Currently, Semtech has an average volume of 549.8K.
Based on the recent corporate insider activity of 152 insiders, corporate insider sentiment is negative 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.
