Semtech Receives a Buy from Oppenheimer

By Austin Angelo

Oppenheimer analyst Rick Schafer assigned a Buy rating to Semtech (NASDAQ: SMTC) today and set a price target of $42. The company’s shares closed yesterday at $39.05, close to its 52-week high of $41.15.

Schafer commented:

“We are raising our estimates after STMC reported F2Q (Jul.) results of $156.3M/ $0.48, above consensus’ $155.6M/$0.47. F3Q (Oct.) guidance was mixed, with revenue slightly below and EPS above the Street ($158.0M/$0.50 vs. $160M/$0.49). SMTC’s core DC-optical, LoRa and protection businesses continue to ramp; however, the company was not immune to well-documented China PON and BST softness, tempering upside. While China softness likely lingers near term, we believe LoRa ramping faster than expected, and a new design win at Apple should offset softer PON. Net, while China risk could weigh on shares, SMTC’s core growth verticals continue to drive DD (%) growth/upside led by LoRa and greenfield Apple wins.”

According to, Schafer is a top 100 analyst with an average return of 16.0% and a 72.8% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Advanced Micro Devices, and NXP Semiconductors.

Currently, the analyst consensus on Semtech is Strong Buy and the average price target is $43.80, representing a 12.2% upside.

In a report issued on August 24, B. Riley also reiterated a Buy rating on the stock with a $48 price target.

The company has a one year high of $41.15 and a one year low of $22.81. Currently, Semtech has an average volume of 504.5K.

Based on the recent corporate insider activity of 101 insiders, corporate insider sentiment is neutral on the stock. Most recently, in June 2017, James Burra, a Director at SMTC bought 2,534 shares for a total of $92,491.

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Semtech Corp. designs, develops, manufactures and markets analog and mixed signal semiconductor products. It also offers proprietary solutions and breakthrough technology in power management, circuit protection, timing and synchronization, touch interface, optical transport equipment, military products, power wireless RF, and digital sensor & signal conditioning ICs. The company was founded in 1960 and is headquartered in Camarillo, CA.