CFRA lifts Lattice Semiconductor target to $66, maintains hold

Tuesday, Lattice (OTC:LTTC) Semiconductor shares (NASDAQ:LSCC) saw their price target increased by CFRA from $48.00 to $66.00, while the firm maintained a Hold rating on the stock. CFRA analyst Angelo Zino justified the revised target by pointing to a higher price-to-earnings (P/E) ratio of 42 times the firm’s 2026 earnings per share (EPS) estimate, which is above the average of Lattice’s peers but still below historical levels. According to InvestingPro data, LSCC currently trades at a P/E ratio of 57.5x and shows elevated valuation multiples across several metrics. The stock’s current price sits between analyst targets ranging from $55 to $85.

The analyst retained the 2025 EPS projection at $1.12 but raised the 2026 forecast to $1.56 from the previous $1.44. Lattice reported a fourth-quarter EPS of $0.15, which did not meet the consensus estimate of $0.19. The company’s sales dropped by 31%, which was close to expectations. This decline was primarily due to continued weakness in the industrial and automotive sectors, where sales plummeted by 51%. However, the Communications & Computing segment remained relatively stable with only a 1% decrease.

Zino noted that the first-quarter guidance provided by Lattice, which aligns with consensus estimates, suggests the company may have moved past its cyclical low point. This is evidenced by an improving backlog, indicated by a book-to-bill ratio above 1, and by the momentum gained from new product lines within its Nexus and Avant platforms. The analyst highlighted that this performance is particularly noteworthy compared to peers who are forecasting sequential declines or guidance below consensus for the first quarter.

The improvement in channel inventory, expected to normalize by mid-year, was also mentioned as a positive sign. This normalization is anticipated to allow Lattice to achieve its long-term revenue growth target of 15%-20% in 2026 and beyond, following a projected low-single-digit growth in 2025.

Lastly, the report emphasized Lattice’s solid financial position, with net cash standing at $136 million and no outstanding debt. This financial stability, combined with the company’s strategic positioning and product development, appears to be the basis for CFRA’s updated price target and maintained Hold rating. InvestingPro’s Financial Health Score of 2.81 (GOOD) confirms this strength, with metrics showing liquid assets exceeding short-term obligations by nearly 4x. Discover detailed insights and a comprehensive Pro Research Report covering Lattice Semiconductor and 1,400+ other US stocks through InvestingPro’s advanced analytics platform.

In other recent news, Lattice Semiconductor has been the subject of multiple analyst upgrades. TD Cowen raised the company’s stock target from $65 to $75, citing signs of stability in the company’s recent financial performance amid broader market challenges. Similarly, Benchmark increased Lattice’s stock target to $65, highlighting a record level of design wins and momentum across its product families. Stifel also adjusted its outlook, increasing the stock’s target from $65 to $70, while KeyBanc Capital Markets raised its target to $75 from $70.

These developments follow Lattice Semiconductor’s recent financial results and guidance, which analysts from various firms found promising. The company’s management expects channel inventory levels to normalize by the middle of the year and maintains a forecast for low single-digit revenue growth and double-digit earnings per share growth for the fiscal year 2025.

In addition to financial developments, Lattice Semiconductor also announced an expansion of its executive team. The company appointed Lorenzo Flores as Chief Financial Officer, Nicole Singer as Chief People Officer, and promoted Erhaan Shaikh to Senior Vice President of Worldwide Sales. These changes are part of a strategic move to support the company’s next growth phase.

These are recent developments for Lattice Semiconductor, a company that continues to navigate the challenges of the semiconductor industry while focusing on growth and operational efficiency. The company’s performance and strategic moves have prompted optimism among analysts, who have adjusted their stock targets accordingly.

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