Semtech price target raised to $150 from $110 at Oppenheimer

Oppenheimer analyst Rick Schafer raised the firm’s price target on Semtech (SMTC) to $150 from $110 and keeps an Outperform rating on the shares ahead of quarterly results. The firm sees upside to Q1 print and Q2 outlook as data center AI wins ramp. Oppenheimer also notes that management has identified a preferred buyer for the SWIR cellular modules business. The firm sees divestiture as immediately accretive to EPS while boosting Semtech gross margin from just over 50% to over 60%. Emergent AI story is on track, Oppenheimer adds.