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Investing.com - BofA Securities has raised its price target on Lattice (OTC:LTTC) Semiconductor (NASDAQ:LSCC) to $52.00 from $50.00 while maintaining an Underperform rating on the stock. The company’s shares, currently trading at $48.73, have fallen over 8% in the past week, according to InvestingPro data.
The semiconductor company reported in-line second-quarter results and provided a third-quarter outlook showing sequential sales growth of 7%, according to BofA Securities. Management expressed optimism about a strong recovery in the second half of 2025 and into 2026. The company’s last twelve months revenue stands at $488.74 million, though it has experienced a significant year-over-year decline of 29.54%.
The price target increase reflects Lattice’s expanding footprint in data centers, where first-half 2025 sales grew more than 100% year-over-year. BofA Securities expects continued server growth to extend into 2026, helping offset near-term headwinds in the industrial segment.
Despite the positive data center momentum, BofA Securities remains skeptical about Lattice’s long-term growth target of 15-20% sales CAGR. The firm notes that Lattice’s AI exposure in data centers remains relatively small at approximately 20% of its mix, and historically FPGAs have faced emerging competition in fast-growing markets. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 4.31 and minimal debt-to-equity of 0.03.
BofA Securities considers Lattice’s current valuation of 33x CY26E PE difficult to justify compared to high-growth compute peers at 22x-35x and high-margin diversified peers at 15x-29x, leading to the maintained Underperform rating despite the modest price target increase. This view aligns with InvestingPro data showing demanding valuations with a P/E ratio of 131.1x and EV/EBITDA of 77.94x. According to InvestingPro’s Fair Value analysis, the stock appears overvalued at current levels. Discover more insights and 13 additional ProTips for LSCC with an InvestingPro subscription.
In other recent news, Lattice Semiconductor Corporation reported its Q2 2025 earnings, which aligned closely with market expectations. The company announced an earnings per share (EPS) of $0.24, matching analyst forecasts. Additionally, Lattice Semiconductor’s revenue slightly exceeded projections, coming in at $124 million. These results reflect steady growth for the company in the second quarter. There were no major mergers or acquisitions reported for Lattice Semiconductor during this period. Analyst firms have not provided any recent upgrades or downgrades for the company. These developments come as part of the company’s ongoing performance in the semiconductor industry.
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