Analyst Reiterates Sell on Lattice, Citing Stretched Valuation and Competitive Risks Despite Raising Price Target to $105

In a report released yesterday, Duksan Jang from Bank of America Securities reiterated a Sell rating on Lattice Semiconductor, with a price target of $105.00.

Duksan Jang has given his Sell rating due to a combination of factors tied mainly to valuation and relative risk-reward. He acknowledges that Lattice is well positioned for strong FPGA demand through 2027, supported by rising server counts, more FPGAs per system, higher average selling prices, and the incremental opportunity from the AMI acquisition, which could significantly enlarge the company’s addressable market.

At the same time, he argues that the current share price already discounts most of this growth, with the stock trading at a sizable premium to other high-growth AI and analog semiconductor names on both P/E and PEG bases. He also points to potential constraints from broader industry supply bottlenecks and the possibility that a key rival, Altera within Intel, may gain share given its internal supply advantages, leading him to reiterate an Underperform rating even as he lifts his price target to $105 to reflect higher earnings estimates and rising peer multiples.

Based on the recent corporate insider activity of 121 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LSCC in relation to earlier this year.