Stifel raises Lattice Semiconductor target to $70, maintains buy

Published 11/02/2025, 14:28
Stifel raises Lattice Semiconductor target to $70, maintains buy

On Tuesday, Stifel analysts adjusted their outlook on Lattice (OTC:LTTC) Semiconductor (NASDAQ:LSCC), increasing the stock’s price target from $65.00 to $70.00 while reaffirming a Buy rating. The revision reflects a positive reception to the company’s recent performance and management’s commentary on an improving bookings trend, with the book-to-bill ratio recently surpassing 1. According to InvestingPro data, analyst targets for LSCC range from $55 to $85, with the stock currently trading at $54.47 and showing a strong financial health score of 2.8 (GOOD). This development is seen as a favorable sign, especially when contrasted with the less optimistic results and outlooks from industry peers.

The company’s management has also indicated that they expect channel inventory levels to normalize by the middle of the year. They have maintained their forecast for low single-digit revenue growth and double-digit earnings per share growth for fiscal year 2025. Furthermore, management anticipates a return to the company’s target growth range of 15 to 20 percent in fiscal year 2026. This outlook comes against a backdrop of recent challenges, with InvestingPro data showing a 24.2% revenue decline in the last twelve months, though the company maintains strong profitability with a 68.9% gross margin.

The upgraded price target and sustained Buy rating come as Lattice Semiconductor has been navigating a challenging environment that has impacted the broader semiconductor industry. Despite these conditions, the company’s results and the management’s outlook suggest resilience and potential for growth in the coming years. The company’s financial strength is evident in its healthy current ratio of 3.98 and minimal debt levels, with debt-to-equity at just 0.03.

Investors have been closely monitoring the semiconductor sector for signs of improvement in inventory levels and demand forecasts. The update from Lattice Semiconductor’s management regarding channel inventory and growth expectations provides a glimpse into the company’s strategic planning and operational efficiency.

Lattice Semiconductor’s stock performance will continue to be watched by investors as the company progresses towards its stated goals. The market will pay particular attention to the company’s ability to achieve the normalization of channel inventory and its financial targets for the next fiscal years.

In other recent news, Lattice Semiconductor has been subject to several positive developments. KeyBanc Capital Markets has revised its price target for the company twice, first raising it to $70 and subsequently to $75, while maintaining an Overweight rating. This revision came in the wake of the company’s Q4 results that met expectations and a Q1 guidance that exceeded forecasts. The company’s book-to-bill ratio, a key indicator of future revenue potential, has surpassed 1 for the first time in six quarters, indicating increased demand for its products.

Moreover, Lattice Semiconductor has announced strategic changes to its leadership team, appointing Lorenzo Flores as CFO, Nicole Singer as Chief People Officer, and promoting Erhaan Shaikh to Senior Vice President of Worldwide Sales. These changes are aimed at supporting the company’s next growth phase. Additionally, the company has launched a new equity incentive plan, reserving 2 million shares of common stock for equity awards, aimed at attracting top talent.

Furthermore, Needham has upgraded its price target for Lattice Semiconductor to $70, maintaining a Buy rating. This followed the company’s Developers Conference, where it showcased its latest hardware innovations and expanded solution stacks. These are the most recent developments for Lattice Semiconductor.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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