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Investing.com - Benchmark raised its price target on Semtech Corp. (NASDAQ:SMTC) to $76.00 from $68.00 while maintaining a Buy rating on Tuesday. The stock has shown remarkable momentum, delivering a 51% return over the past year and an impressive 81% gain in the last six months, according to InvestingPro data.
The price target increase follows Benchmark’s recent fireside chat with Semtech’s CEO Dr. Hong Hou, SVP of IR Mitch Haws, and Treasurer Eric Zink during Benchmark’s 12th Annual TMT Conference last week.
Benchmark highlighted Semtech’s strategic transformation from a diversified, debt-laden company to a focused, financially disciplined player positioned for high-growth, high-margin markets.
The investment firm noted that Semtech has established a new foundation for accelerated growth while pursuing opportunities in three key areas: data center infrastructure, the LoRa ecosystem, and proximity sensing.
Benchmark indicated that this multi-pronged strategy "is already yielding tangible results and is poised to generate significant long-term value for shareholders."
In other recent news, Semtech Corp . reported solid performance for the July quarter, achieving a 20% annual growth with modest upside to consensus estimates on both revenue and earnings per share, as noted by Benchmark. The company’s outlook indicates moderate revenue upside with earnings per share guidance aligning with expectations. UBS has reiterated its Buy rating for Semtech, maintaining a $65 price target, emphasizing the company’s stable data center opportunities projected for 2026. Craig-Hallum raised its price target to $62, highlighting Semtech’s strong positioning in the AI data center market and the anticipated growth from upcoming product ramps and deployments. Piper Sandler also increased its price target to $65, following what it described as a "beat and raise quarter," attributing this to the strength in Semtech’s FiberEdge business. Additionally, Stifel raised its price target to $57, citing Semtech’s progress in its turnaround efforts and improved business profile, with potential operating leverage through 2025 and beyond. These developments underscore Semtech’s strategic advancements and robust market positioning, particularly in AI and data center sectors.
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