Needham buyers on Semtech weakness due to CEO transition

Semtech’s board announced the appointment of Dr. Hong Q. Hou, a current member of the board, as President and CEO following the departure of former CEO Paul Pickle in what Needham calls a “surprise announcement.” However, in a conversation with Dr. Hou and CFO Mark Lin, management stressed the CEO transition had nothing to do with any improprieties and is unrelated to Semtech’s operational or financial performance and that disagreement with Pickle appears to be around how to work together in the best interests of stockholders. In the firm’s conversation, management stressed it would continue the turnaround started by Pickle, said there would be no change in corporate strategy and the firm confirmed there has been no change in the ACC opportunity, noted the analyst, who would be a buyer on weakness due to the CEO transition. Needham has a Buy rating and $50 price target on Semtech shares.