Analyst Cody Acree from Benchmark Co. reiterated a Buy rating on Semtech (SMTC – Research Report) and keeping the price target at $82.00.
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Cody Acree has given his Buy rating due to a combination of factors influencing Semtech’s current and future market position. Despite the recent announcement that the CopperEdge solution will not meet its initial revenue expectations due to architectural changes by Nvidia, Acree sees this as an isolated challenge. Semtech continues to benefit from strong demand in its Data Center business, with particular growth in optical networking markets and its Fiber and TriEdge product lines.
Moreover, Semtech’s ongoing engagements with multiple Cloud Service Providers and the expanding market for its ACC solutions present further growth opportunities. The company is also experiencing positive momentum in its PON business, high-end consumer products, and industrial segments, which are contributing to its overall revenue growth. Therefore, despite the short-term setbacks, Acree recommends investors consider this a buying opportunity due to the company’s diverse and robust growth prospects.
According to TipRanks, Acree is a 5-star analyst with an average return of 21.8% and a 63.29% success rate. Acree covers the Technology sector, focusing on stocks such as Intel, Semtech, and Texas Instruments.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $60.00 price target.