Lattice Semiconductor (LSCC – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Duksan Jang from Bank of America Securities reiterated a Sell rating on the stock and has a $58.00 price target.
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Duksan Jang has given his Sell rating due to a combination of factors, primarily focusing on Lattice Semiconductor’s premium valuation and the competitive landscape. Despite the company’s expectation to outperform the broader market and its strong growth prospects in FPGA and server content, Jang expresses concern over the stock’s high valuation multiple, which stands at over 40 times CY26 earnings. This is significantly higher compared to its high-growth and high-margin peers, which are valued at 25-30 times and 20-25 times, respectively.
Additionally, Jang highlights the potential risks associated with elevated inventory levels and intensified competition from major players like Intel and AMD. Even with Lattice Semiconductor’s efforts to reduce operating expenses and gain market share, the analyst remains cautious about the aggressive sales growth consensus for CY26, compounded by internal and channel inventory challenges. As such, Jang maintains an Underperform rating, reflecting the belief that the current stock price already factors in the expected future growth.