Positive Outlook for Semtech Driven by IoT and Cloud Growth Opportunities

Analyst Christopher Rolland of Susquehanna reiterated a Buy rating on Semtech (SMTC – Research Report), retaining the price target of $60.00.

Christopher Rolland has given his Buy rating due to a combination of factors that suggest a positive outlook for Semtech. The company is expected to deliver in-line or better guidance for the upcoming quarters, driven by sustained strength in its LoRa, IoT, and TVS segments. Additionally, there are growth opportunities in Signal Integrity, particularly as hyperscalers continue to invest in Cloud and AI technologies.
Furthermore, Semtech is actively engaging with over 20 customers for its CopperEdge designs, with anticipated revenue by the end of the year. The company’s FiberEdge products are also gaining traction, being integrated into optical transceiver modules for CSP end users. Despite some delays in larger opportunities, such as proximity sensing, the stabilization of LoRa and IoT, along with potential in LPO/LRO and CPO, supports a positive long-term outlook. Rolland reiterates a positive rating with a price target of $60, reflecting confidence in Semtech’s strategic positioning and future growth prospects.

Rolland covers the Technology sector, focusing on stocks such as Semtech, Silicon Laboratories, and Knowles. According to TipRanks, Rolland has an average return of 15.5% and a 55.24% success rate on recommended stocks.