No Heroic Bounce-Back In Store For Semtech's Protection And Sensing Segment, Analyst Revises Price Target Ahead Of Q1

Susquehanna analyst Christopher Rolland reiterated a Neutral rating on the shares of Semtech Corporation SMTC, lowering the price target to $25 from $30.
Semtech will report the first quarter of fiscal year 2024 earnings after the close on Wednesday, June 7.
The analyst expects inline results and softer guidance in the quarter to be reported.
On the last call, management suggested a 2H rebound, but the analyst sees a more muted recovery.
The consumer market may be bottoming, but the analyst does not expect a "heroic bounce-back" in the Protection and Sensing segment in 2H.
The analyst notes that Semtech may also bear the brunt of pricing pressure on LoRa products from cheaper NB-IoT solutions and integration risks with Sierra Wireless.
The analyst also expects Advanced Protection and Sensing segment to bottom but with slower recovery.
The analyst notes that Readthroughs for Advanced Protection and Sensing were weak, as 1Q smartphone shipments and 2Q forecasts were disappointing (improving much slower than originally anticipated).
For Q1, the analyst expects revenues of $234.12 million. EPS loss estimates widened to $(0.08) from the prior expectation of $(0.07) loss.
Price Action: SMTC shares are trading higher by 2.85% to $22.36 on the last check Thursday.

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