In a report released today, Craig Ellis from B.Riley FBR maintained a Buy rating on Semtech (SMTC), with a price target of $55. The company’s shares closed last Monday at $42.95, close to its 52-week low of $39.54.
Ellis said:
“Semtech Corp.’s (SMTC) results modestly exceeded Street F1Q20 estimates with two of three segments outperforming, including F2Q20’s guide was below, hurt by persistent macro weakness and Huawei headwinds. So, revenues are climbing off the bottom, but with a flatter trajectory than previously modeled and with more mixed segment performances. Shares appeared to ease -2% AMC. Overall, we believe execution is progressing despite macro pressure, and retain mid/long-term growth confidence. Notably: 1) LoRa’s tracking ahead of network and country deployment targets and the multi-year funnel increased ~4% to $675M. However, FY20’s revenue bogey fell from $120M to $90.0M as macro pressures weigh. However, numerous growth catalysts exist in FY21.”
According to TipRanks.com, Ellis is a 4-star analyst with an average return of 3.6% and a 48.7% 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 average price target, a 19.3% upside from current levels. In a report issued on August 26, Robert W. Baird also maintained a Buy rating on the stock with a $45 price target.
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The company has a one-year high of $60.55 and a one-year low of $39.54. Currently, Semtech has an average volume of 571.2K.
Based on the recent corporate insider activity of 133 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. It offers signal integrity, protection, wireless and sensing, and power and high-reliability products.
