Analyst Tristan Gerra of Robert W. Baird maintained a Buy rating on Semtech, retaining the price target of $110.00.
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Tristan Gerra has given his Buy rating due to a combination of factors tied to Semtech’s expanding role in next‑generation data center and optical connectivity. The company is positioned to benefit from multiple ACC, XPO, and NPO ramps over the next several years, with secured capacity, increasing lane counts, and higher content per system that together support meaningful share gains and structurally higher margins.
He also highlights that these new product cycles are expected to be gross‑margin accretive, with many offerings modeled above the 60% level, while the HieFo laser acquisition adds another profitable growth layer amid tight industry supply. Based on projected double‑digit revenue growth, margin expansion, and continued balance sheet deleveraging, Gerra values the shares at 25x his F2029 PF EPS estimate of $4.40, above peer averages, which underpins his $110 price target and Buy recommendation.
In another report released on March 17, B. Riley Securities also maintained a Buy rating on the stock with a $115.00 price target.
Based on the recent corporate insider activity of 62 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.