Street Calls of the Week
Investing.com - Piper Sandler has raised its price target on Semtech Corp. (NASDAQ:SMTC) to $65.00 from $55.00 while maintaining an Overweight rating on the semiconductor company’s stock. The stock, which has gained over 31% in the past six months, currently trades near $51, with analyst targets ranging from $48 to $70.
The price target increase follows what Piper Sandler described as a "beat and raise quarter" for Semtech’s July results and October outlook. The firm noted that Semtech is currently benefiting significantly from strength in its FiberEdge business. According to InvestingPro data, the company’s revenue has grown by approximately 14% over the last twelve months, with 8 analysts recently revising their earnings estimates upward.
Piper Sandler highlighted potential growth drivers expected later this calendar year, including the return to growth in Active Copper Cables (ACC) and continued tailwinds from Linear Packet Optical (LPO) within the data center segment. These factors could provide momentum for Semtech’s broader data center portfolio to grow sequentially in the high single to low double digits.
The research firm also pointed to Semtech’s LoRa business as a quarterly highlight, noting it is acquiring new customers due to new functionality and applications, which is helping to offset declines from a current customer.
Piper Sandler expressed confidence in management’s execution and indicated that the company is positioned for "fundamental upside" in calendar year 2026, supporting the firm’s Overweight rating on Semtech stock.
In other recent news, Semtech Corporation reported impressive second-quarter fiscal 2026 results, with a 20% year-over-year revenue increase and adjusted earnings nearly quadrupling compared to the same period last year. This performance exceeded expectations and reflects strong operational progress. Additionally, Stifel has raised its price target for Semtech to $57, up from $54, while maintaining a Buy rating on the stock. The firm highlighted Semtech’s ongoing turnaround efforts, noting an improved business profile and potential for increased operating leverage through 2025 and beyond. These developments indicate a positive trajectory for the company, as reflected in the recent analyst upgrade.
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