Semtech price target raised to $40 from $30 at Piper Sandler

Piper Sandler analyst Harsh Kumar raised the firm’s price target on Semtech to $40 from $30 and keeps an Overweight rating on the shares. The firm notes that after the close on Thursday, Semtech reported a mixed January quarter with April guidance that was also mixed. Despite this, the company called for strength within its data center product portfolio, which is largely expected to continue into the calendar 2025 time period. On channel inventories, management has taken efforts to meaningfully reduce them, which Piper sees as being beneficial for growth through the rest of the year. While there are still pockets of inventory that remain, the firm views the major inventory problems for the company as largely behind them.