Semtech Corp. (SMTC) PT Raised to $61 at B.Riley

B.Riley analyst Craig Ellis raised the price target on Semtech Corp. (NASDAQ: SMTC) to $61.00 (from $58.00) while maintaining a Buy rating.

The analyst commented: "Semtech Corp's. 8/27 AMC F2Q25 result and F3Q25 guidance sales and EPS print solidly exceeded consensus, with good margin, spending, and AEBITDA quality versus expectations, which we believe reflects well on new CEO Hong Hou’s first quarter. Thus, despite a strong +69% YTD stock gain to exceed the SOX by ~2.7x, albeit off of a T2-year -85% decline, shares indicated +6% higher AMC. The bigger picture is a continued growth recovery, led by AI Data Center with its late-CY24/FY25 NVDA active copper cable AI program ramp and now with what we believe are robust multi-year Y/Y gains there and elsewhere, seasonally solid HighEnd Consumer demand, and surprising LoRA rebound off of a cyclical trough. Further, we are encouraged with other company controllables such as expense management and F2Q’s EPSneutral debt pay-down with further reduction potential ahead. Strategic carve-outs remain a high priority at the right time and can further reduce debt and add equity value. Adding it all up, we believe more visible Q/Q growth is gaining traction and can accelerate in FY26, and company-specific drivers gain steam. Thus, our FY25&26 EPS rise 3-6%, and FY27 initiates with healthy Y/ Y sales and EPS growth. On higher execution confidence, our PT rises from $58 to $61, the 49% upside sustaining a Buy and a 23.3x consensus F2Y P/E at the T14-yr midpoint attractive entry points to position for such in our view."

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