Semtech Corp. (SMTC) PT Lowered to $53 As Huawei Ban Impacts The Outlook - Piper Jaffray

Piper Jaffray analyst Harsh Kumar cut the price target on Semtech Corp. (NASDAQ: SMTC) to $53.00 (from $58.00) after the company reported revenue of $131.4mn (down 17.9% q/q) but slightly above the prior $130mn guidance midpoint ($125mn-$135mn range). The Street consensus was at $130.4mn.

The analyst stated "The F2Q20 (Jul) guidance midpoint of $135.0mn/$0.36 for revenue/NG EPS was slightly below Street expectations of $139.2mn/$0.40, including ~$7mn impact from the Huawei ban. Ex-Huawei, Semtech’s business appears to be recovering, including a recent pickup in data center demand, a broad-based recovery in industrial Protection, and continuing momentum in LoRa (including China). Overall, we believe SMTC remains wellpositioned ahead of multiple attractive secular growth stories including LoRA/IoT, data centers, 4G/5G base stations, industrial/automotive protection content)". No change to the Overweight rating.

You May Also Be Interested In

• Seaport Global Securities Starts ADI Global Distribution (ADIG) at Buy
• Aya Gold & Silver Inc (AYA:CN) (MYAGF) PT Raised to Cdn$41 at BMO Capital
• AutoCanada (ACQ:CN) (AOCIF) PT Raised to Cdn$27 at BMO Capital