In a recent development, Stifel's analyst Tore Svanberg has revised the target price for Semtech Corporation's stock (SMTC, Financial), lowering it from $54 to $35. Despite this decrease, the analyst continues to maintain a Buy rating on the company's shares.
The adjustment comes as the firm assesses the potential impacts of tariffs on the semiconductor industry, particularly for companies involved in analog, connectivity, and processors. While the March quarter results are expected to be largely in line, there are concerns about a weaker outlook for the June quarter.
Svanberg suggests that, regardless of the eventual scale and duration of these tariffs, the semiconductor sector is at an increasing risk of entering a cyclical downturn. This increasingly uncertain environment contributes to the revised expectations for Semtech as part of the broader industry landscape.
