Stifel reiterates Buy rating on Semtech stock ahead of earnings

Published 22/08/2025, 13:02
Stifel reiterates Buy rating on Semtech stock ahead of earnings

Investing.com - Stifel has maintained its Buy rating and $54.00 price target on Semtech Corp . (NASDAQ:SMTC) ahead of the company’s July quarter earnings report, due in 3 days. According to InvestingPro data, the stock has shown strong momentum with a 33% gain over the past six months, despite its volatile nature. Eight analysts have recently revised their earnings estimates upward for the upcoming period.

The research firm expects Semtech’s revenue to be in line with or potentially slightly above its $256.0 million estimate, with possible outperformance from the Infrastructure segment, which represented 29% of April quarter revenues.

For the October quarter, Stifel projects revenue could meet or exceed its $266.2 million estimate, with potential upside again from Infrastructure based on recently increased hyperscaler capital expenditure plans for calendar year 2025.

The firm notes that Semtech’s Industrial segment could see steady, slight quarter-over-quarter growth in IoT Systems and LoRa normalization, while the High-End Consumer segment may benefit from seasonality and continued share gains, especially in Protection products.

Stifel maintains its $54 price target, representing 4.6 times calendar year 2026 estimated enterprise value to sales, citing Semtech’s strengthening near-term financial profile and secular product tailwinds supporting the company’s long-term outlook. With analyst targets ranging from $48 to $68, deeper insights and additional ProTips are available through InvestingPro’s comprehensive research reports.

In other recent news, Semtech Corporation reported second-quarter revenue of $251.1 million and earnings per share (EPS) of $0.38, slightly surpassing consensus estimates by approximately $1 million and one cent. The company provided guidance for the upcoming quarter, projecting sales of $256 million and an EPS of $0.40, again slightly exceeding market expectations. Analysts at CFRA raised their price target for Semtech to $65 from $45, maintaining a Buy rating due to anticipated CopperEdge wins. Benchmark analyst Cody Acree also maintained a Buy rating with a $68 price target, citing strong financial disclosures. Piper Sandler reiterated an Overweight rating with a $55 target, noting robust performance in the data center sector. Meanwhile, Stifel increased its price target to $45, highlighting Semtech’s ongoing momentum in infrastructure growth. Additionally, Semtech expanded its stock incentive plan and amended its bylaws to reflect current Delaware law, introducing provisions for corporate operations during emergencies. These developments indicate a positive outlook from multiple analyst firms and strategic corporate governance changes.

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