Semtech (SMTC) Receives a Buy from Oppenheimer


In a report released today, Rick Schafer from Oppenheimer maintained a Buy rating on Semtech (NASDAQ: SMTC), with a price target of $65. The company’s shares closed yesterday at $49.90, close to its 52-week high of $51.95.

Schafer wrote:

“We are raising our estimates and price target for SMTC after the company reported its latest beat/raise Wednesday. F2Q (July) sales/EPS of $163M/$0.55 topped consensus $161M/$0.54E. F3Q (Oct.) outlook for $173M/$0.61 also bested the Street’s $172M/$0.60E led by core LoRa, DC CDR and Protection (combined ~2/3 of sales). GM increased 30bps Y/Y to 61.5%. SMTC finished F2Q with record backlog and a book-to-bill >1 as LoRA continues to hit/exceed milestones. Mgmt is on track to deliver an organic $1B top line by 2022. We see continued outsized growth and margin expansion on mix and cost control. We remain buyers here with a new $65 target (from $58).”

According to TipRanks.com, Schafer is a 5-star analyst with an average return of 16.3% and a 69.9% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Skyworks Solutions, Texas Instruments, and Maxim Integrated.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Semtech with a $58.56 average price target, representing a 17.4% upside. In a report issued on August 27, RBC Capital also maintained a Buy rating on the stock with a $55 price target.

.

See today’s analyst top recommended stocks >>

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 $12.56 million.

Based on the recent corporate insider activity of 170 insiders, corporate insider sentiment is neutral on the stock. Last month, Marc Pegulu, the VP and GM of SMTC sold 500 shares for a total of $24,425.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts