- Benchmark analyst David Williams maintained a Buy on Lattice Semiconductor Corp LSCC and raised the price target from $65 to $95.
- LSCC's product and design win funnel continue gaining momentum despite the macro weakness and inventory correction impacting the broader semi-industry.
- The portfolio strength remains the driver of sales growth, while relentless execution supports record fundamentals.
- Although gross margin durability has recently been a pain point for semiconductors, Lattice delivered 70% in 4Q and saw further room for expansion.
- With twelve consecutive quarters of sequential improvement (+1040 bps), the analyst was comfortable that the gains would be sustainable with tailwinds as the Avant platform ramps.
- Core end market demand is performing well, with channel inventories remaining lean with strategic builds of internal inventory to support upcoming product launches.
- Automotive and Industrial continued to demonstrate healthy growth, with over half of revenue from the segment.
- Combined with Comms and Computing, core end markets represented 91% of total revenue.
- The analyst views LSCC as a compelling story with favorable exposure to long-term growth markets with limited downside on weaker consumer and computing dynamics.
- With few competing solutions and tailwinds strengthening across the business, LSCC is well positioned with a differentiated portfolio of solutions and a value-added, ASP accretive software stack.
- KeyBanc analyst John Vinh maintained an Overweight and raised the price target from $80 to $100.
- LSCC reported strong 4Q results, slightly above expectations, and 1Q guidance, which beat.
- Strength was attributed to design wins ramping in auto and industrials, which offset weakness in the data center.
- Most notably, management indicated that Avant design wins are "far exceeding" Nexus simultaneously after launch.
- Finally, supply constraints continue to ease as BS inventories increase, while lead times are beginning to ease.
- Price Action: LSCC shares traded higher by 7.19% at $88.64 on the last check Tuesday.
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