Semtech Corp. (SMTC) PT Raised to $200 at Needham

Needham analyst N. Quinn Bolton raised the price target on Semtech Corp. (NASDAQ: SMTC) to $200.00 (from $105.00) while maintaining a Buy rating.

The analyst comments "Semtech reported impressive F1Q27 results that were above expectations while F2Q27 revenue guidance was also above Street estimates. The higher than expected revenue guide is driven by the ramp of Data Center and LoRa platforms. Our key takeaways include: 1) Y/Y Data Center growth is expected to accelerate throughout FY27 driven by copper, optical and HieFo products; 2) Optical portfolio strength is driven by 800G and 1.6T FRO and LPO wins across hyperscalers in U.S. and China; 3) Near-term demand for HieFo gain chips is outpacing supply and the company is targeting 3-4x capacity increases this year and next; and, 4) Management highlighted it is in the final stages of the divestiture of its cellular module unit.We increase our PT to $200, based on 50x our new FY29/CY28 NG EPS estimate of $4.00, which we believe has additional upside."

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