Analyst Christopher Rolland of Susquehanna reiterated a Buy rating on Semtech (SMTC – Research Report), reducing the price target to $60.00.
Christopher Rolland has given his Buy rating due to a combination of factors that highlight Semtech’s potential for growth. The company reported results that were generally in line with expectations, with strong performance in its LoRa and IoT segments offsetting weaker outcomes in Signal Integrity and PON. Despite the disappointment regarding ACCs not ramping up as initially expected, Semtech’s management is optimistic about their CopperEdge products being integrated into NVIDIA’s future rack designs, which could address existing signal integrity issues.
Additionally, Semtech’s engagement with over 20 potential customers is anticipated to generate revenue in the latter part of FY26. The company also achieved record sales for its FiberEdge products and expects further adoption of LPO/LRO later in the fiscal year. The LoRa segment exceeded expectations due to smart meter wins, and the IoT Systems segment benefited from changes in the competitive landscape. Although there are challenges, such as the decline in PON and seasonal drops in Consumer TVS, the overall outlook remains positive, supported by better-than-expected gross margin guidance and strategic R&D investments. These factors contribute to the reaffirmation of a Positive rating and a price target of $60.
In another report released today, Needham also maintained a Buy rating on the stock with a $54.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SMTC in relation to earlier this year.
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