Stifel Nicolaus analyst Tore Svanberg has maintained their bullish stance on SMTC stock, giving a Buy rating today.
Tore Svanberg’s rating is based on several factors that suggest potential growth for Semtech despite recent challenges. The company is expected to report results in line with expectations, particularly due to sequential growth in infrastructure revenue driven by data center applications. While high-end consumer revenue is anticipated to decline due to seasonal factors, the industrial segment is projected to grow, supported by LoRa and cellular IoT revenue.
Although there has been a recent selloff due to lowered expectations for ACC revenue, Svanberg views this as an overreaction by investors. He maintains confidence in the company’s long-term prospects, reflected in the decision to uphold a Buy rating. However, the 12-month target price has been adjusted from $70 to $60, considering the updated revenue expectations and market conditions.
Svanberg covers the Technology sector, focusing on stocks such as Semtech, Inseego, and Marvell. According to TipRanks, Svanberg has an average return of 12.1% and a 55.09% success rate on recommended stocks.
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