Semtech Corp. (SMTC) PT Raised to $31 at Stifel

Stifel analyst Tore Svanberg raised the price target on Semtech Corp. (NASDAQ: SMTC) to $31.00 (from $26.00) while maintaining a Buy rating.

The analyst comments "NT positives include: (1) improving PON demand on the release of new China tenders, DC momentum; (2) indications of a potential demand recovery in LoRa (POS +13% q/q in F4Q24, revs to grow q/q in F1Q25E); (3) relatively stable recurring software revenue; all suggesting (4) a potential F1Q25E bottom. While high debt ($1.41 gross debt at 5.86% int.) remains NT overhang, we believe (5) positive FCF at +$12.2mn; and (6) sufficient liquidity with supportive debt covenants NT offer operating runway for the company’s turnaround."

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