Semtech price target lowered to $54 from $74 at Needham

Needham lowered the firm’s price target on Semtech (SMTC) to $54 from $74 and keeps a Buy rating on the shares. The firm cites the company’s 8-K reducing its FY26 active copper cable – ACC – single- use-case total addressable market as it now expects net sales in FY26 from its CopperEdge products used in 1.6T ACCs to be lower than its previously disclosed floor case estimate of $50M, the analyst tells investors in a research note. The management expects to generate revenue from CopperEdge linear equalizers in FY26 and beyond, and the firm is taking this opportunity to pull all CopperEdge revenue out of its model, Needham adds.