Analyst Christopher Rolland from Susquehanna reiterated a Buy rating on Semtech and keeping the price target at $60.00.
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Christopher Rolland has given his Buy rating due to a combination of factors that highlight Semtech’s potential for growth. The company is expected to deliver robust performance in the IoT, LoRa, and TVS sectors, with promising opportunities in the DC market as hyperscalers continue to invest in Cloud and AI technologies. Additionally, Semtech’s engagement with over 20 potential customers for ACC/LE use cases indicates a strong pipeline, with expectations of ramping up by year-end.
Furthermore, Semtech’s involvement in the optical transceiver market is gaining traction, particularly with its TIAs and drivers being integrated into modules for CSP end users. The LPO segment is also showing positive signs, with anticipated revenue growth in the latter half of the year and a significant production order for 800G LPO. The company’s LoRa and TVS segments are performing well, with LoRa tracking to the higher end of its quarterly run rate and smartphone units suggesting potential upside. Overall, these dynamics contribute to a positive outlook for Semtech, supporting the Buy rating and a price target of $60.
Based on the recent corporate insider activity of 59 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.