SW:CC - Roth gets skeptical on report of Semtech dealing for Sierra Wireless

• Sierra Wireless stock ( NASDAQ: SWIR ) is still riding high ( up 17.1% ) on reports of talks to be acquired by Semtech ( NASDAQ: SMTC ), even as Roth Capital Partners has weighed in with skepticism on a potential deal.
• That transaction is "extremely unlikely," analyst Scott Searle says, pointing to the core company skill sets and gross margin profiles.
• A cellular business would be "be highly complementary to SMTC," he said, but "we believe the best approach would be at the silicon level,” pointing to a candidate like Sequans Communications ( NYSE: SQNS ) instead. Sequans is up 9.5% in midday trading, while Semtech ( SMTC ) shares moved down in response to the deal report and are -6.7% .
• And while Roth has a Buy on Sierra Wireless, "we would not be opposed to taking profits on today’s news."
• A week ago, Roth said there was a buying opportunity in the stock going into Q2 results . Sierra Wireless ( SWIR ) reports after the market close Aug. 11, with consensus expectations for normalized earnings per share of $0.21 on revenues of $168.2M .

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