2024-02-18 07:40:53 ET
Summary
- Lattice Semiconductor is leading the low-power programmable chips market and is increasing its addressable market by moving upward in the value chain.
- The firm fully deleveraged its balance sheet and can now increase its cash distribution.
- While it is outgrowing the FPGA market, its valuation seems too expensive to me. My DCF model indicates it is difficult to justify near-term upside potential.
- Despite experiencing a cyclical correction on its end markets, the stock is bouncing back sharply from recent lows. This makes me skeptical.
- I prefer to wait for a better entry point. I rate the stock as a HOLD.
My thesis
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For further details see:
Lattice Semiconductor: Great Asset Priced For Perfection