Stifel Raises Semtech (SMTC) Price Target, Keeps Rating

On Wednesday, May 28, Stifel analysts raised the price target on Semtech Corporation (NASDAQ:SMTC) from $42 to $45 and maintained a “Buy” rating. This decision came after the company reported its first-quarter results for fiscal year 2026, where both revenue and non-GAAP earnings per share slightly exceeded Stifel’s estimates. Revenue surpassed expectations by 0.4%, and earnings per share were $0.01 above estimates.

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

Stifel’s analysis noted that Semtech Corporation (NASDAQ:SMTC) is seeing steady growth in infrastructure, despite short-term challenges in the Advanced Communications and Computing (ACC) segment. The corporation’s new ACC products, branded as CopperEdge, are generating attention because of their ability to offer reach lengths of 5 meters and 3 meters at speeds of 800G and 1.6T. This marks a big improvement over the previous generation, which only delivered a 1.1-meter reach length. Stifel also highlighted contributions from other segments of Semtech Corporation’s (NASDAQ:SMTC), such as LoRa technology for robotics, unmanned aerial vehicles (UAVs), and smart buildings, as well as proximity sensors for smart glasses and SurgeSwitch devices.

Looking ahead, Stifel expects to see an improvement in Semtech Corporation’s (NASDAQ:SMTC) profitability. The firm expects non-GAAP operating margins (OMs) to increase from 16.4% in fiscal year 2025 to 18.9% in fiscal year 2026 and 20.2% in fiscal year 2027. Stifel analysts also expect that non-GAAP EPS will grow at about twice the rate of revenue growth in fiscal year 2027.

Semtech Corporation (NASDAQ:SMTC) is an American company that specializes in high-performance semiconductors, Internet of Things (IoT) systems, and Cloud connectivity services.

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