Two Blokes

Semtech: Buy Rating Initiated On Transition Catalyst Potential And Valuation Upside

  • click to rate
    Posted by Two Blokes Jun 5 - Filed in Stock - 8 views
    We initiate on Semtech Corporation at Buy, as we believe the transition to higher-margin LoRa and FiberEdge franchises will compensate for near-term revenue headwinds from legacy and IoT divestiture risks. Our $52/sh price target is based on applying 4.5x EV/Sales multiple to our FY27E revenue estimate of $1.03 bn. We estimate FY26E/FY27E revenue of $980mn/$1.03bn.