Goldman Sachs Neutral On Semtech

Goldman Sachs is out with a research report on Semtech Corporation SMTC and it has a Neutral rating and a $23 price target on shares. In a note to clients, Goldman Sachs writes, "Although we believed Semtech's strong exposure to smartphones and communications infrastructure would partly offset the weakness seen by analog peers, we think customer-specific issues are negatively impacting the near-term outlook. However, in the medium term, we anticipate that these segments will allow Semtech's fundamentals to outperform analog peers. In addition, Semtech's valuation is becoming more attractive, as the stock is trading below its typical 15%–20% premium to the group on 2011E and 2012E P/E. We remain Neutral rated on the stock for now, as we believe Street estimates for analog stocks will need to come down further before the stock can significantly outperform. We are lowering our FY12E/FY13E/FY14E EPS estimates to $1.50/$1.50/$1.65 from $1.60/$1.70/$1.80, primarily due to the weaker sales outlook: ." Shares of SMTC lost 27 cents yesterday to close at $20.40.