In a report released today, Tristan Gerra from Robert W. Baird reiterated a Buy rating on Semtech (SMTC – Research Report), with a price target of $60.00.
Tristan Gerra has given his Buy rating due to a combination of factors including Semtech’s recent win in proximity sensing for a major smartphone customer, which is expected to generate significant incremental revenue. This new business opportunity aligns with Semtech’s strong position in AI-driven, high-bandwidth connectivity technologies, which are crucial for data centers, and supports the company’s growth prospects.
Additionally, despite some reductions in estimates due to limited activity in certain areas, Semtech’s valuation remains attractive given its potential for future growth in areas like Signal Integrity and Sensing. The company’s expertise in analog R&D is highly regarded in the industry, further supporting the positive outlook. The price target of $60 reflects these growth opportunities and is based on a valuation multiple slightly below the peer average, considering current market conditions.
Gerra covers the Technology sector, focusing on stocks such as Himax Technologies, Broadcom, and Intel. According to TipRanks, Gerra has an average return of 5.5% and a 47.60% success rate on recommended stocks.