Semtech Corporation (SMTC) Beats Q4 Estimates; Stifel Cuts Price Target Citing Softer Outlook and Tariff Risks

Stifel analyst Tore Svanberg recently lowered the price target on Semtech Corporation (NASDAQ:SMTC) to $35 from $54 and kept a Buy rating on the shares. Semtech Corporation (SMTC) develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms.

Tariff-impacts, including secondary and tertiary impacts, leave the advisory with an overarching view entering the Q1 earnings season for the Analog, Connectivity and Processors group to have generally in-line March quarter results, but softer June quarter outlooks.

Regardless of where tariffs eventually shake out in magnitude, duration and breadth, the advisory believes the likelihood of the overall semiconductor industry tipping over into a cyclical downturn has increased materially, the analyst added in a preview note.

A technician looking at a circuit board of analog semiconductor products.

In earnings for the fourth fiscal quarter, the company reported earnings per share of $0.40, beating analyst estimates by $0.08. The revenue over the period was $251 million, beating market estimates by $1.74 million.

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