Needham analyst Quinn Bolton maintained a Buy rating on Semtech (SMTC – Research Report) today and set a price target of $54.00.
Quinn Bolton has given his Buy rating due to a combination of factors influencing Semtech’s performance. The company reported robust results for the fourth quarter of fiscal year 2025 and provided optimistic guidance for the first quarter of fiscal year 2026, primarily driven by shipments related to data center infrastructure.
Despite anticipated revenue challenges for the CopperEdge product line due to changes in NVIDIA’s architectural racks, Semtech expects its solutions to be integrated into the upcoming Rubin generation. Additionally, the adoption of LPO and LRO technologies is gaining momentum, with management expressing confidence in increased uptake by the end of fiscal year 2026. Furthermore, the company’s non-GAAP gross margin exceeded expectations, supported by the strength in the data center segment, which helped counterbalance other areas. The price target remains at $54, based on a valuation of 28.5 times the estimated non-GAAP earnings per share for fiscal year 2027.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $55.00 price target.
Based on the recent corporate insider activity of 44 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.