B. Riley last night upgraded Semtech to Buy from Neutral with a price target of $52, up from $34, which represents 73% 12-month potential upside. Following a multi-quarter negative earnings revision cycle, with stock sentiment further hit by the Sierra Wireless deal, a "period of estimate stability could be approaching," the analyst tells investors in a research note. The firm believes growth acceleration is possible in 2024 on Sierra accretion and with potential for significant further stock upside if Semtech’s non-internet of things carve-outs are executed. Given an "inexpensive valuation, the company offers a "good reward/risk," contends B. Riley.
Published first on TheFly
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