Benchmark analyst Cody Acree downgraded Semtech to Hold from Buy and removed the firm’s price target citing the “unclear acquisition synergies” of its recently closed purchase of Sierra Wireless after the company posted its fiscal Q2, July quarter results. While the firm understands the company’s argument for a more complete end-to-end IoT offering, it is not convinced that there is sufficient end-market demand for the company’s combined solution to support the acquisition as it believes Semtech’s native LoRa solution for low-powered longrange IoT and the Sierra Wireless Cellular IoT offerings “do not have enough joint-market applications to be a long-term driver of growth for the combined entity,” the analyst tells investors.
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