TECH - Semtech's Incoming CEO's Long-Term Model and Potential Divestures have Upside: Analyst | Benzinga
Needham analyst Quinn Bolton upgraded Semtech Corp (NASDAQ: SMTC) from Hold to Buy and a $35 price target.
The analyst sees a potentially more significant upside to the shares over the long term.
He believes weak end-market demand and inventory digestion in the IoT and telecom markets may result in volatility in near-term results.
However, Thursday’s earnings call presents an opportunity for incoming CEO Paul Pickle to introduce a new long-term operating model with earnings power well above Street estimates and highlight potential divestiture opportunities to raise cash and pay down debt.
His experience with Pickle at Microsemi gives him confidence in his ability to streamline SMTC’s operations.
From Needham’s 4th Annual Semiconductor and SemiCap 1x1 Investor Conference and recent earnings calls from Analog Devices, ...