There’s a lot to be optimistic about in the Consumer Goods sector as 3 analysts just weighed in on Lightpath Technologies (LPTH), Lumentum Holdings (LITE) and Semtech (SMTC) with bullish sentiments.
Lightpath Technologies (LPTH)
In a report issued on September 13, Marc Wiesenberger from B.Riley FBR maintained a Buy rating on Lightpath Technologies, with a price target of $2. The company’s shares closed last Monday at $0.73, close to its 52-week low of $0.62.
Wiesenberger wrote:
“Buy-rated LightPath Technologies (LPTH, $2.00 PT) reported F4Q19 results AMC on 9/12 and held its conference call BMO on 9/13. Revenues of $8.7M came in at the top-end of the preannounced $8.4M-$8.7M range, and after accounting for the $0.8M restructuring charge associated with the NY facility relocation (completed in June), adjusted EBITDA was $0.6M (just shy of our $0.7M estimate). Trade war escalations via increased tariffs impacted gross margins, but management is exploring options to more effectively utilize its global operations to mitigate increases which should yield relief in F2Q20 (Dec).”
According to TipRanks.com, Wiesenberger is ranked #655 out of 5551 analysts.
Lightpath Technologies has an analyst consensus of Moderate Buy, with a price target consensus of $2.
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Lumentum Holdings (LITE)
In a report released today, Dave Kang from B.Riley FBR reiterated a Buy rating on Lumentum Holdings, with a price target of $71. The company’s shares closed last Monday at $59.
Kang wrote:
“Last Friday (9/13), we hosted investor meetings with Lumentum’s (LITE—Buy, $71 PT) VP Chris Coldren. ROADM (Reconfigurable Optical Add/Drop Multiplexer) demand remains strong and the company still remains capacity constrained. LITE has at least a 3-year lead on competitors for high-end (NxN) ROADMs that have higher ASPs (5x-7x compared with low end) and margins. Even though 3DS revenue in F1H20 will be flat to up slightly over F1H19, we believe this segment could experience robust growth in F1H21 as the NA customer introduces 5G models with world-facing sensors. Meanwhile, the datacom segment could be driven by the emerging 5G cycle as 5G towers will have multiple optical transceivers that use LITE’s laser chips (highest GM product).”
According to TipRanks.com, Kang is a 5-star analyst with an average return of 19.4% and a 64.2% success rate. Kang covers the Consumer Goods sector, focusing on stocks such as DASAN Zhone Solutions Inc, Applied Optoelectronics, and Acacia Communications.
Lumentum Holdings has an analyst consensus of Strong Buy, with a price target consensus of $71.36, a 17.6% upside from current levels. In a report issued on September 12, Stifel Nicolaus also reiterated a Buy rating on the stock with a $70 price target.
Semtech (SMTC)
In a report released today, Craig Ellis from B.Riley FBR maintained a Buy rating on Semtech, with a price target of $55. The company’s shares closed last Monday at $48.89.
Ellis said:
“We recently hosted Semtech (SMTC) mgmt. for a day of investor meetings, gaining increased confidence in IT and LT sales growth potential and our positive investment thesis, reinforcing views from 8/28’s F2Q print (see 8/29’s “ Solid Print But Macro…”). The broader SOX backdrop is a solid 10.4% QTD gain, aided by September’s more conciliatory trade tone and more so now-emerging seasonal, cyclical, and secular IoT, AI/data center, and 5G drivers. We believe these can increasingly, if gradually, play to SMTC’s favor in 2H19 and 2020, albeit within a moderate, rather than steep, cyclical recovery by historic standards. On highlights, recall LoRa is rapidly becoming industry’s long-range low power IoT standard with deployment traction now picking up outside China and we sense with more large enterprise engagements.”
According to TipRanks.com, Ellis is a 5-star analyst with an average return of 6.9% and a 57.4% success rate. Ellis covers the Consumer Goods sector, focusing on stocks such as Applied Materials Inc, Axcelis Technologies, and Rudolph Technologies.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Semtech with a $51.14 average price target, representing a 5.4% upside. In a report issued on September 9, Cowen & Co. also maintained a Buy rating on the stock with a $54 price target.
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