Needham analyst Quinn Bolton has maintained their bullish stance on LSCC stock, giving a Buy rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Quinn Bolton has given his Buy rating due to a combination of factors that suggest strong future growth for Lattice Semiconductor. The company is expected to see significant revenue growth by 2026, driven by a robust B2B ratio, which is the best it has been in approximately 18 months. Despite the challenges of macroeconomic volatility and inventory normalization, the Industrial and Automotive (I&A) segment is anticipated to return to growth, with management targeting a growth rate between mid-single digits to 15%.
Additionally, the Communications and Compute segment is projected to grow between 20-40%, making up about 60% of the total revenue. The increased activity in this segment, particularly with neoclouds and enterprise customers, further supports the positive outlook. New products are also expected to contribute significantly to revenue, reaching a high-teens percentage by 2025 and a mid-20% range by 2026. These factors collectively underpin the Buy rating, with a price target of $80 based on a projected P/E multiple of 45x the estimated EPS for 2027.
Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LSCC in relation to earlier this year.