In a report released today, Quinn Bolton from Needham maintained a Hold rating on Semtech (SMTC). The company’s shares closed yesterday at $55.50.
Bolton said:
“SMTC reported in-line F4Q19 results, but F1Q20 guidance was well below expectations due to softer demand in data center, smartphones and China. LoRa exceeded its FY19 deployment milestones while FY19 revenue at $78MM was slightly below the target range of $80-$100MM. Management provided a FY20 LoRa revenue target of $100MM-$140MM and new deployment milestones. While our estimates are more conservative, SMTC believes FY20 sales could be flat Y/Y driven by a stronger F2H20. SMTC also noted bookings in all markets and regions have improved over the last two weeks. Reflecting the weaker near-term demand environment, we lower our revenue and EPS estimates for FY19 and FY20. With SMTC’s shares trading at ~$51.50 (~20.6x our revised CY20 NG EPS est.) in the premarket, we maintain our Hold rating.”
According to TipRanks.com, Bolton is a top 100 analyst with an average return of 15.0% and a 66.5% 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.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Semtech with a $58.33 average price target.
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The company has a one-year high of $60.55 and a one-year low of $37.60. Currently, Semtech has an average volume of 486.9K.
Based on the recent corporate insider activity of 150 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.
