Goldman Sachs Resumes Semtech Corp. (SMTC) at Buy

Goldman Sachs resumed coverage on Semtech Corp. (NASDAQ: SMTC) with a Buy rating and a price target of $31. Analyst Gabriela Borges thinks EPS is at a trough, and she noted M&A potential.

"We resume coverage of Semtech at Buy with 24% upside to our 12-month price target. (1) We believe Semtech’s revenue and EPS growth will outpace peers in 2015, after several quarters of underperformance due to volatility at Huawei and Samsung (which are now de-risked at less than 15% of sales). We model 11% yoy sales growth vs. peers at 7% driven by product cycles in data center, broadcast, and sensing; and EPS growth of 34% vs. peers at 15%. (2) As the analog industry further consolidates, Semtech screens as an attractive asset with a robust margin profile (that would be accretive to several larger companies) and discounted valuation relative to peers," said Borges.

For an analyst ratings summary and ratings history on Semtech Corp. click here. For more ratings news on Semtech Corp. click here.

Shares of Semtech Corp. closed at $24.90 yesterday.

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