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Semtech (SMTC) Boosts IoT Prospects With The Things Industries

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Semtech (SMTC - Free Report) collaborated with The Things Industries to introduce Internet of Things (IoT) solutions.

Notably, the new solutions will combine LoRaWAN and cellular solutions. More precisely, the solutions will be integrated with long-range coverage and ultra-low power LoRa devices, and high-speed cellular connections.

These solutions are well-equipped to make end-to-end connectivity integration easier, which will accelerate IoT deployments.

With the latest move, Semtech strives to deliver a seamless cellular connectivity experience to LoRaWAN developers. Moreover, it focuses on creating a reliable and robust network of IoT products and solutions on the back of the underlined partnership.

Growth Prospects

The collaboration with The Things Industries is likely to bolster SMTC’s prospects in the booming IoT market.

According to the IOT Analytics report, the global IoT market is anticipated to grow 19% in 2023.

Per a report from The Insight Partners, the underlined market is expected to hit $2.3 trillion by 2028, seeing a CAGR of 29.4% between 2022 and 2028.

Per a report from Mordor Intelligence, the IoT market is expected to witness a CAGR of 10.3% between 2023 and 2027.

Portfolio Strength: Key Catalyst

The latest move is in sync with the company’s growing efforts toward expanding its portfolio.

We believe that an expanding portfolio is likely to continue to help the company in bolstering its customer base.

Recently, SMTC’s LoRa devices and LoRaWAN standard were utilized by Sindcon (Singapore) IoT Technology and IoT Kreasi Indonesia in battery-powered smart water and electricity meters.

LoRa devices and LoRaWAN standard were selected by Nordic Propeye and were incorporated into the latter’s new HVAC optimization solution.

We note that expanding clientele on the back of robust portfolio strength is expected to aid Semtech in winning investors’ confidence in the near term.

Coming to the price performance, SMTC has lost 53.4% over a year against the industry’s growth of 9.9%.

However, the company is suffering from the coronavirus pandemic-led disruptions.

Also, macroeconomic headwinds and softness in the consumer markets are overhangs.

Zacks Rank & Stocks to Consider

Currently, Semtech carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Agilent Technologies (A - Free Report) and AMETEK (AME - Free Report) . While Arista Networks sport a Zacks Rank #1 (Strong Buy), Agilent and AMETEK carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have gained 12.6% in the past year. The long-term earnings growth rate for ANET is projected at 12.6%.

Agilent shares have gained 3.3% in the past year. A’s long-term earnings growth rate is projected at 10%.

AMETEK shares have gained 8.1% in the past year. The long-term earnings growth rate for AME is projected at 8.81%.

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