Quinn Bolton, an analyst from Needham, maintained the Buy rating on Semtech (SMTC – Research Report). The associated price target was lowered to $54.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Quinn Bolton’s rating is based on several considerations that reflect both current challenges and future potential for Semtech. Despite the reduction in the anticipated total addressable market for Semtech’s active copper cable products, there remains optimism around future revenue possibilities from CopperEdge linear equalizers. The decision to remove CopperEdge revenue from the model is a cautious step, aiming for better insight into upcoming use cases and the pace of adoption.
While this adjustment might affect Semtech’s valuation in the short term, the underlying belief in the company’s innovation and long-term growth prospects supports the Buy recommendation. The revised price target of $54, based on a conservative earnings estimate, indicates confidence in the company’s ability to navigate current challenges and capitalize on future opportunities.
In another report released on February 8, Roth MKM also maintained a Buy rating on the stock with a $65.00 price target.
Based on the recent corporate insider activity of 38 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 SMTC in relation to earlier this year.