Semtech price target raised to $95 from $70 at Piper Sandler

Piper Sandler raised the firm’s price target on Semtech (SMTC) to $95 from $70 and keeps an Overweight rating on the shares. The firm believes the IoT business contributes in the neighborhood of 19c to EPS after adjusting for taxes. Based on Piper’s estimated sale value of roughly $640M, it expects the overall impact to EPS to be fairly minimal, in the range of 9c to 10c after interest income. The firm would also expect Semtech to deploy the proceeds towards its optical portfolio, more than likely adding to the existing TIA and driver portfolio. The company remains well positioned to capitalize on the fabric opportunity, Piper adds.