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On Tuesday, KeyBanc Capital Markets adjusted its outlook on Lattice (OTC:LTTC) Semiconductor (NASDAQ:LSCC), increasing the price target to $75 from the previous $70 while sustaining an Overweight rating on the stock. This adjustment follows Lattice Semiconductor’s announcement of fourth-quarter results that aligned with expectations, excluding a one-time charge, and a guidance for the first quarter that was slightly higher than anticipated. According to InvestingPro analysis, the stock currently trades above its Fair Value, with a P/E ratio of 52.12 and strong financial health metrics. InvestingPro subscribers have access to 15+ additional insights about LSCC’s valuation and growth prospects.
The management of Lattice Semiconductor highlighted that, for the first time in six quarters, the company’s book-to-bill ratio has exceeded 1 in the recent weeks. This metric is a key indicator of future revenue potential and suggests an uptick in demand for the company’s products. Despite a significant revenue decline of 24.23% over the last twelve months, the company maintains a robust gross margin of 68.9%. Furthermore, the company is currently shipping quantities below end-consumption levels and anticipates that its channel inventory will normalize by mid-2025. Lattice Semiconductor remains confident in achieving low single-digit percentage growth throughout 2025. Dive deeper into LSCC’s financial health and growth prospects with a comprehensive InvestingPro Research Report, available along with 1,400+ other detailed company analyses.
In terms of market segments, Lattice Semiconductor has observed signs of recovery within the Communications sector in the second half of 2024, along with a notable improvement in the Automotive sector during the fourth quarter. The company expects all of its segments to exhibit quarter-over-quarter growth in the first quarter.
KeyBanc’s decision to raise the price target reflects their optimism based on these positive developments. The firm’s analysts are adjusting their estimates accordingly and reassert their confidence in Lattice Semiconductor’s performance with the revised price target and Overweight rating.
In other recent news, Lattice Semiconductor Corporation has been making significant strides. The company has strengthened its leadership team with Lorenzo Flores stepping in as Chief Financial Officer, Nicole Singer as Chief People Officer, and Erhaan Shaikh’s promotion to Senior Vice President of Worldwide Sales. These recent appointments are part of a strategic move to bolster the company’s next growth phase.
KeyBanc analysts have shown increased confidence in Lattice Semiconductor, raising the company’s price target from $54 to $70 while maintaining an Overweight rating. This adjustment is based on the firm’s 2026 estimated earnings per share (EPS) of $1.61 and reflects a positive outlook on the company’s future earnings potential.
Lattice Semiconductor has also launched a new equity incentive plan, reserving 2 million shares of common stock for equity awards. The plan aims to attract top talent, which could potentially enhance the company’s growth in the competitive semiconductor market.
Needham has also raised its price target on Lattice Semiconductor to $70, maintaining a Buy rating. This adjustment follows the company’s Developers Conference, where it showcased its latest hardware innovations and expanded solution stacks. These developments highlight the company’s ongoing innovation and market momentum.
Finally, Baird, a financial services firm, has increased its price target for Lattice Semiconductor to $68, retaining an Outperform rating. This adjustment reflects Baird’s positive outlook on Lattice Semiconductor’s growth potential, particularly in the artificial intelligence (AI) and security sectors.
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