In a report released today, Cody Acree from Benchmark Co. reiterated a Buy rating on Semtech, with a price target of $85.00.
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Cody Acree has given his Buy rating due to a combination of factors that highlight Semtech’s potential for future growth despite some current challenges. The company reported a solid performance in its October quarter with revenue slightly exceeding expectations and a positive outlook for the January period, indicating sequential and annual revenue growth in key areas like Infrastructure Data Center and LoRa applications. Although there was a slight shortfall in EPS guidance due to gross margin pressures, the market’s initial negative reaction is seen as an opportunity for investors to reengage, given the promising developments in new opportunities such as LPO modules and ACCs, which offer strong margins.
Furthermore, Acree emphasizes that Semtech has successfully transitioned into a focused and financially sound enterprise with a clear roadmap for growth. This makes it an attractive option for investors looking to capitalize on growing trends in AI Data Center, next-generation connectivity, and other industrial and consumer applications. As a result, Acree reiterates the Buy rating and raises the price target to $85, reflecting confidence in the company’s strategic positioning and future earnings potential.
Acree covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Semtech, and Nvidia. According to TipRanks, Acree has an average return of 23.0% and a 64.59% success rate on recommended stocks.