Semtech Raises Price Target to $175 After 34% EPS Growth, 16% Revenue Rise
SMTC•Semtech’s first-quarter EPS rose to $0.51, a 34% year-over-year increase, beating estimates of $0.45, while revenue climbed 16% to $291 million, its ninth straight quarter of sales growth. Morgan Stanley raised its price target to $175 from $155, implying a 6.4% upside, as Needham and Baird followed suit.
1. Strong Q1 Financial Performance
Semtech delivered first-quarter EPS of $0.51, surpassing the $0.45 consensus and marking a 34% year-over-year increase. Revenue reached a record $291 million, up 16% from the prior year and representing the ninth consecutive quarter of net sales growth.
2. Analyst Price Target Revisions
Morgan Stanley raised its price target to $175 from $155, reflecting a projected 6.4% upside. Needham and Baird also boosted their targets, citing robust earnings and expanding IoT chip demand.
3. Forward Outlook and Market Drivers
The company issued positive guidance for the second quarter, forecasting continued acceleration across data center, infrastructure and IoT segments. Semtech’s proprietary LoRa technology remains a key driver as long-range, low-power wireless solutions gain traction.
