Northland upgrades Macom to Outperform, would take advantage of any weakness

As previously reported, Northland upgraded Macom (MTSI) to Outperform from Market Perform with a price target of $140, up from $105. Last week’s pullback in the shares post earnings is likely to continue today given competitor Semtech’s (SMTC) disclosure of lower sales of active copper cables, but Macom explicitly addressed this issue on the earnings call and factored it into guidance, says the analyst. The firm would look to take advantage of any weakness given strong bookings and multiple growth vectors, including AI Optical, Satcom and Defense, the analyst tells investors.