On October 2, Semtech rose 5.04% in regular trading, trading at $196.77/share, with turnover of approximately $82.71 million. The stock extended its rebound from a late-September pullback triggered by insider selling, supported by a series of institutional upgrades.
On the news front, Oppenheimer raised its price target on Semtech to $225 from $200, maintaining an Outperform rating. This follows UBS adjusting its target to $230 from $225 with a Buy rating, and Seaport initiating coverage at Buy with a $200 target. The analyst consensus mean target stands at approximately $209, suggesting continued upside from current levels.
Fundamentally, the company reported Q2 adjusted EPS of $0.71, beating estimates of $0.57 by roughly 25%, on revenue of $341.9 million that exceeded the $328.6 million consensus. Data center revenue surged 91% year-over-year on robust AI infrastructure demand. Additionally, Semtech completed full production availability of its 50G optical transport portfolio for 5G-Advanced networks and expanded its LoRa Plus IoT product line, reinforcing its strategic positioning across AI data centers and IoT.
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