Lattice Semiconductor (LSCC) PT Lowered to $60 at Benchmark

Benchmark analyst David Williams lowered the price target on Lattice Semiconductor (NASDAQ: LSCC) to $60.00 (from $65.00) while maintaining a Buy rating.

The analyst commented, "We reiterate our Buy rating and $60 PT following the in-line outlook and guidance with demand stable and continued design win momentum, driving QoQ sales growth for the first time since 3Q23. Sales were up 2.3% to $120.1?million with gross margin improving to 69.0% driving $0.22 in EPS. Customer activity remained strong with a record pace of design wins spanning generative AI datacenter, industrial robotics, automotive ADAS, AR/VR, post quantum security, and far edge AI. Similar to peers, LSCC does not see tariffs having a major direct impact with 80% of revenue from outside the U.S. over the last two years and all production and OSAT partners located in Asia. While recognizing the potential indirect impact and 2H uncertainty, management remains upbeat with strength developing across core end markets and positive trends in consumption, backlog, and book to bill providing confidence the U-shaped recovery is beginning to materialize. Despite the macro uncertainty, the company is executing well against the areas within its control and maintaining strong cost discipline while new products continue to gain traction, which should easily support the firm’s 15-20% expected growth trajectory once demand inflects."

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