Semtech’s (SMTC) Buy Rating Reiterated at TD Cowen

TD Cowen reiterated their buy rating on shares of Semtech (NASDAQ:SMTC) in a report issued on Friday morning,Benzinga reports. The firm currently has a $215.00 target price on the semiconductor company’s stock.

Several other equities analysts also recently issued reports on the stock. Weiss Ratings downgraded shares of Semtech from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, October 6th. Morgan Stanley set a $205.00 price target on shares of Semtech in a research report on Friday. UBS Group upped their price objective on shares of Semtech from $225.00 to $230.00 and gave the stock a “buy” rating in a research note on Wednesday, August 26th. New Street Research set a $230.00 price objective on shares of Semtech in a research note on Thursday, August 20th. Finally, Seaport Research Partners started coverage on shares of Semtech in a report on Tuesday, September 22nd. They set a “buy” rating and a $200.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Semtech has an average rating of “Moderate Buy” and an average price target of $213.11.

Semtech Price Performance

Shares of NASDAQ SMTC opened at $136.73 on Friday. Semtech has a 52-week low of $60.28 and a 52-week high of $201.99. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.31 and a current ratio of 1.70. The business has a fifty day moving average of $156.97 and a two-hundred day moving average of $139.69. The stock has a market cap of $12.76 billion, a PE ratio of 90.55 and a beta of 2.41.

Semtech (NASDAQ:SMTC) last posted its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.10. Semtech had a net margin of 13.11% and a return on equity of 21.74%. The business had revenue of $341.87 million for the quarter, compared to analyst estimates of $328.67 million. During the same quarter in the prior year, the firm earned $0.41 EPS. The firm’s quarterly revenue was up 32.7% compared to the same quarter last year. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. As a group, equities research analysts expect that Semtech will post 2.75 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Mark Lin sold 967 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $178.87, for a total transaction of $172,967.29. Following the sale, the chief financial officer owned 35,999 shares in the company, valued at approximately $6,439,141.13. This represents a 2.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Elliot Green sold 2,766 shares of the firm’s stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $190.35, for a total value of $526,508.10. Following the completion of the sale, the executive vice president owned 7,367 shares of the company’s stock, valued at approximately $1,402,308.45. This trade represents a 27.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 13,737 shares of company stock valued at $2,267,877. Insiders own 0.44% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. Andar Capital Management HK Ltd acquired a new stake in Semtech in the 2nd quarter valued at about $162,000,000. BlackRock Inc. bought a new position in shares of Semtech in the second quarter worth about $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Semtech by 396.3% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 842,125 shares of the semiconductor company’s stock worth $136,298,000 after acquiring an additional 672,447 shares during the last quarter. Assenagon Asset Management S.A. raised its stake in shares of Semtech by 323.0% in the first quarter. Assenagon Asset Management S.A. now owns 781,003 shares of the semiconductor company’s stock worth $60,051,000 after acquiring an additional 596,373 shares during the last quarter. Finally, Atreides Management LP acquired a new position in shares of Semtech during the second quarter worth approximately $89,214,000.

Semtech News Summary

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech raised its near-term Q3 guidance and presented a longer-term outlook through 2030, helping support a recovery in the stock. Northland Securities upgraded SMTC from “market perform” to “outperform” and set a $186 price target. Semtech rises as it boosts Q3 guidance, offers up 2030 outlook; Northland upgrades
• Positive Sentiment: The company expects data-center revenue to more than double in fiscal 2028 and 2029. Baird reaffirmed its “outperform” rating and $300 target, citing record bookings and strong two-year visibility from demand for copper, fiber and optical connectivity used in AI infrastructure. Semtech eyes data center revenue surge as AI infrastructure spending grows
• Positive Sentiment: TD Cowen maintained a “buy” rating with a $215 price target, while BMO raised its target to $230. These targets indicate analysts see substantial upside if Semtech delivers on its data-center growth plans.
• Positive Sentiment: Investors purchased approximately 6,179 SMTC call options, about 43% above average daily volume, signaling increased speculative interest in a rebound.
• Neutral Sentiment: Stifel lowered its price target from $220 to $200 but retained a “buy” rating, suggesting valuation or execution concerns while preserving a positive long-term view. Semtech Stock Rebounds as Wall Street Turns Focus to Near-Term Earnings Targets
• Negative Sentiment: Despite the improved outlook, some investors viewed SMTC as expensive after its roughly eightfold run over the past year. That valuation concern likely contributed to selling pressure around analyst day and could limit further gains unless earnings growth accelerates. Semtech Stock Looks Expensive After Its 8x Run

Semtech Company Profile

Semtech Corporation (NASDAQ:SMTC) is a global semiconductor and infrastructure technology company that develops analog and mixed-signal products for communications, industrial, data center, consumer, and automotive applications. Its portfolio is designed to improve connectivity, power efficiency, signal integrity, and protection in electronic systems.

The company’s products include high-speed connectivity solutions for data centers and communications networks, power management and protection devices, signal integrity components, and wireless and radio-frequency technologies.