Semtech’s (SMTC) “Buy” Rating Reaffirmed at TD Cowen

Semtech (NASDAQ:SMTC)‘s stock had its “buy” rating restated by TD Cowen in a note issued to investors on Friday, Benzinga reports. They currently have a $215.00 price target on the semiconductor company’s stock. TD Cowen’s price objective suggests a potential upside of 57.51% from the stock’s current price.

Other research analysts also recently issued research reports about 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 objective on shares of Semtech in a report on Friday. BMO Capital Markets upped their price objective on shares of Semtech from $155.00 to $230.00 and gave the stock an “outperform” rating in a report on Tuesday. New Street Research set a $230.00 target price on shares of Semtech in a report on Thursday, August 20th. Finally, Benchmark reiterated a “buy” rating on shares of Semtech in a report on Thursday, August 20th. One research 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’s stock. Based on data from MarketBeat, Semtech has an average rating of “Moderate Buy” and a consensus price target of $213.11.

Semtech Trading Down 5.3%

SMTC stock traded down $7.71 during midday trading on Friday, hitting $136.50. The stock had a trading volume of 3,824,999 shares, compared to its average volume of 2,875,048. The firm has a market cap of $12.74 billion, a P/E ratio of 90.36 and a beta of 2.41. The company has a current ratio of 1.70, a quick ratio of 1.31 and a debt-to-equity ratio of 0.47. Semtech has a 1-year low of $60.28 and a 1-year high of $201.99. The business has a fifty day moving average price of $157.02 and a two-hundred day moving average price of $139.23.

Semtech (NASDAQ:SMTC) last released its earnings results on Tuesday, August 25th. The semiconductor company reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.10. The company had revenue of $341.87 million for the quarter, compared to the consensus estimate of $328.67 million. Semtech had a net margin of 13.11% and a return on equity of 21.74%. Semtech’s quarterly revenue was up 32.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.41 EPS. Semtech has set its Q3 2027 guidance at 1.020-1.080 EPS. On average, sell-side analysts predict that Semtech will post 2.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Semtech news, Director Rodolpho C. Cardenuto sold 5,321 shares of Semtech stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $165.00, for a total value of $877,965.00. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Mark Lin sold 967 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $178.87, for a total transaction of $172,967.29. Following the transaction, the chief financial officer owned 35,999 shares of the company’s stock, valued at $6,439,141.13. This represents a 2.62% decrease in their position. The SEC filing for this sale provides additional information. 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. Company insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Semtech

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SMTC. Andar Capital Management HK Ltd bought a new position in Semtech during the second quarter worth about $162,000,000. BlackRock Inc. bought a new position in shares of Semtech in the second quarter valued at approximately $1,577,947,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position 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 valued at $136,298,000 after acquiring an additional 672,447 shares during the period. Assenagon Asset Management S.A. boosted its position 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 valued at $60,051,000 after acquiring an additional 596,373 shares during the period. Finally, Atreides Management LP bought a new position in shares of Semtech in the second quarter valued at approximately $89,214,000.

Key Semtech News

Here are the key news stories impacting Semtech this week:

• Positive Sentiment: Semtech raised its third-quarter outlook and presented a bullish 2030 growth framework at its analyst day. Management expects data-center revenue to more than double in fiscal 2028 and 2029, supported by demand for copper, fiber and optical connectivity as AI infrastructure spending expands. Semtech rises as it boosts Q3 guidance and offers 2030 outlook
• Positive Sentiment: Baird reaffirmed its “outperform” rating and $300 price target, citing record bookings and strong visibility over the next two years. The firm believes Semtech is well positioned to benefit from accelerating data-center connectivity demand. Semtech eyes data center revenue surge as AI infrastructure spending grows
• Positive Sentiment: Northland upgraded Semtech from “market perform” to “outperform” with a $186 target. TD Cowen also reaffirmed its “buy” rating with a $215 target, while BMO raised its target to $230. These actions reinforce Wall Street confidence in the company’s growth trajectory.
• Positive Sentiment: Trading in Semtech call options rose about 43% above average, indicating increased speculative interest in further gains, though options activity is not a fundamental measure of performance.
• Neutral Sentiment: Stifel maintained a “buy” rating but reduced its price target from $220 to $200, suggesting continued confidence in the business alongside more cautious valuation or execution assumptions.
• Negative Sentiment: At roughly 92 times earnings, Semtech’s valuation leaves the stock vulnerable if AI-related growth expectations are delayed or fail to justify its substantial prior run-up. Recent coverage has characterized the shares as expensive after their sharp appreciation. Semtech stock looks expensive after its run

About Semtech

Semtech Corporation is a global semiconductor and technology company that designs and supplies analog and mixed-signal products for communications, industrial, automotive, consumer, and infrastructure applications. Its solutions are used to manage, protect, connect, and transmit data in electronic systems.

The company’s portfolio includes signal-integrity products, protection devices, power-management components, optical and high-speed connectivity solutions, and video-processing technologies.