Semtech (SMTC) is well positioned to gain share in the fast-growing Active Copper Cable while its LoRa technology and handsets continue to grow, Oppenheimer said in a note Monday.
"We believe SMTC deserves to trade at a premium multiple relative to the group," the report said.
Oppenheimer raised its estimates and upgraded the stock to outperform from perform after hosting management meetings with investors last week.
"Tone was bullish as CEO Hong Hou detailed strategic growth opportunities," the report said, pointing to Active Copper Cable and Linear Pluggable Optics for DC AI.
The note said LoRa adoption was also highlighted as increased functionality expands use to greenfield growth vectors including drones, robotics, and automation.
The report also said a divestiture of non-core cellular module business could be a future catalyst.
Shares of Semtech were up more than 8% in recent trading.
Price: 67.43, Change: +5.45, Percent Change: +8.80
精彩评论