Lattice Semiconductor stock maintains Buy rating at Stifel on AI growth

Published 05/08/2025, 17:30
Lattice Semiconductor stock maintains Buy rating at Stifel on AI growth

Investing.com - Lattice (OTC:LTTC) Semiconductor (NASDAQ:LSCC) received a reiterated Buy rating and $60.00 price target from Stifel on Tuesday. The stock currently trades at $54.12, having declined 8.2% over the past week. According to InvestingPro analysis, the stock appears overvalued at current levels, with multiple valuation metrics showing premium pricing.

The semiconductor company reported second-quarter 2025 results that aligned with expectations and provided third-quarter guidance generally consistent with consensus estimates.

Stifel noted that while ongoing inventory normalization continues to affect revenue improvement, Lattice management indicated the worst headwinds are now behind the company, with Compute & Communications segment inventories largely recovered in the first half of 2025.

The company expects Industrial & Automotive market inventories to normalize by year-end, according to management commentary highlighted in the Stifel report.

Stifel pointed to strength in bookings and backlog, successful new product ramps, and opportunities in data center and far-edge AI as indicators of strong longer-term growth potential for Lattice Semiconductor.

In other recent news, Lattice Semiconductor reported its Q2 2025 earnings, which aligned closely with market expectations. The company posted an earnings per share of $0.24, meeting forecasts, while revenue slightly exceeded projections at $124 million. Benchmark has reiterated its Buy rating for Lattice Semiconductor, citing solid execution and a more upbeat management tone. The firm highlighted record design wins and strengthening demand in the Communications and Computing segments. BofA Securities raised its price target for Lattice Semiconductor to $52.00, up from $50.00, while maintaining an Underperform rating. The company provided a third-quarter outlook indicating a sequential sales growth of 7%. Management expressed optimism about a strong recovery in the second half of 2025 and into 2026. These developments reflect a positive momentum for Lattice Semiconductor in various market segments.

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