Semtech price target raised to $70 from $48 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Semtech (SMTC) to $70 from $48 and keeps a Buy rating on the shares. The firm notes the company reported a beat and strong guide on data center strength, which was primarily driven by Fiber products. Semtech guided for a small increase sequentially from the ACC products and expects larger increases in the following quarters. The company reiterated the ACC opportunity is still more than $100M. Craig-Hallum believes within a quarter or two that the company could raise the $100M ACC floor expectation. The firm continues to think Semtech’s LPO TIA driver product could show strong interest from data centers with expected sales late calendar 2025.