Semtech Stock: A Deep Dive Into Analyst Perspectives (8 Ratings)

8 analysts have expressed a variety of opinions on Semtech (NASDAQ:SMTC) over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $49.75, a high estimate of $68.00, and a low estimate of $30.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 15.06%.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Semtech is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Semtech. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Semtech compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Semtech's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Semtech's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Semtech analyst ratings.

About Semtech

Semtech Corp is engaged in designing, developing, manufacturing and marketing analog and mixed-signal semiconductors, algorithms and wireless semiconductors, connectivity modules, gateways, routers and connected services for IoT. The company operates in four reportable segments: Signal Integrity, Analog Mixed Signal and Wireless, IoT Systems and IoT Connected Services. The majority of the company's revenue is earned through Analog Mixed Signal and Wireless segment. Geographically majority of the company's revenue is earned from Asia Pacific region, company also operates in North America and Europe.

Financial Milestones: Semtech's Journey

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3M period, Semtech showcased positive performance, achieving a revenue growth rate of 30.09% as of 31 January, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Semtech's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 15.6%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Semtech's ROE stands out, surpassing industry averages. With an impressive ROE of 19.44%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Semtech's ROA excels beyond industry benchmarks, reaching 2.8%. This signifies efficient management of assets and strong financial health.

Debt Management: Semtech's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.03, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.