Gleacher & Co. Maintains a 'Buy' on Semtech Corp. (SMTC); Limited Upside in April, but Long-term Growth Dynamics Intact
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Price: $32.64 --0%
Rating Summary:
19 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 6 | New: 4
Rating Summary:
19 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 6 | New: 4
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Gleacher & Co. maintains a 'Buy' on Semtech Corp. (NASDAQ: SMTC), PT $29.
Gleacher analyst says, "Heading into April quarter results we remain bullish longer-term, despite potential limitation of upside in the near-term. We continue to like SMTC's product pipeline, including a rapidly growing SMI 40- and 100G transceiver business (which has benefited from SMTC's manufacturing scale) and world-class port protection portfolio. We expect the aforementioned demand drivers to continue to fuel SMTC's pace of design win activity, which was a whopping 703 last quarter."
"Simply put, SMTC exposure to softer trends at Finisar (Nasdaq: FNSR), Cisco (Nasdaq: CSCO) and select handset OEMs (LG, Samsung and Research in Motion(Nasdaq: RIMM)) could curb upside in the quarter. However, we do not see significant risk to our $119mil and $0.42, nor the Street's $119mil and $0.43 April quarter estimates as its broad customer base stems EPS downside (only two 10% customers). Consequently, we expect an in-line quarter vs. SMTC's guidance of $117mil-$121mil and $0.41-$0.44."
For more ratings news on Semtech Corp. click here and for the rating history of Semtech Corp. click here.
Shares of Semtech Corp. closed at $28.10 yesterday.
Gleacher analyst says, "Heading into April quarter results we remain bullish longer-term, despite potential limitation of upside in the near-term. We continue to like SMTC's product pipeline, including a rapidly growing SMI 40- and 100G transceiver business (which has benefited from SMTC's manufacturing scale) and world-class port protection portfolio. We expect the aforementioned demand drivers to continue to fuel SMTC's pace of design win activity, which was a whopping 703 last quarter."
"Simply put, SMTC exposure to softer trends at Finisar (Nasdaq: FNSR), Cisco (Nasdaq: CSCO) and select handset OEMs (LG, Samsung and Research in Motion(Nasdaq: RIMM)) could curb upside in the quarter. However, we do not see significant risk to our $119mil and $0.42, nor the Street's $119mil and $0.43 April quarter estimates as its broad customer base stems EPS downside (only two 10% customers). Consequently, we expect an in-line quarter vs. SMTC's guidance of $117mil-$121mil and $0.41-$0.44."
For more ratings news on Semtech Corp. click here and for the rating history of Semtech Corp. click here.
Shares of Semtech Corp. closed at $28.10 yesterday.
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