Semtech initiated with an Outperform at Northland

Northland analyst Gus Richard initiated coverage of Semtech with an Outperform rating and $32 price target. Shares have sold off as its organic business is expected to be down 40%-50% in Q1, the CEO is retiring, and Semtech just closed a large acquisition that adds debt, notes the analyst, who admits things "will take time to sort out," but thinks there are "avenues for value creation" by combining the LoRa and Sierra Wireless product offerings. The Sensing and Protection legacy business is "in a state of decline," but is profitable on operating margins, while Signal Integrity is "a well-positioned high margin business," the analyst added.