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Semtech (SMTC) Introduces a Refreshed Brand to Reflect Sierra
Semtech (SMTC - Free Report) introduced a refreshed brand and an updated logo in order to reflect its merging with Sierra Wireless which it acquired this January.
Notably, Sierra Wireless is a provider of wireless data communications products. It holds a strong position in cellular IoT and delivers robust and diverse device-to-cloud IoT solutions.
Semtech’s overall portfolio got expanded with robust cloud-to-chip products and services like semiconductors, cellular modules and routers, software, and connected services, post the Sierra acquisition.
The new brand represents the company’s commitment toward developing sustainable technology solutions for IoT, data centers and consumer devices.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
We believe Semtech’s solid prospects associated with the Sierra buyout are expected to expand its presence in the booming IoT and data center markets.
With the Sierra acquisition, Semtech aims to double its annual revenues and add $100 million of high-margin IoT Cloud services recurring revenues. SMTC also expects to generate $40 million of run rate operational synergies in the next 12-18 months.
Per a report from The Insight Partners, the underlined market is expected to hit $2.3 trillion by 2028, at 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 10.5% between 2022 and 2027.
According to a report from Statista, revenues in the data center market are anticipated to hit $342.1 billion in 2023 and reach $410.4 billion by 2027 at a CAGR of 4.7% between 2023 and 2027.
A report from Prescient & Strategic Intelligence indicates that the data center market is likely to reach $343.6 billion by 2030 at a CAGR of 5.1% between 2021 and 2030.
We believe that Semtech’s growing footprint in these promising markets will help it in winning investors’ confidence in the days ahead.
Coming to the price performance, SMTC has lost 51.9% in the past year against the industry's rally of 18.3%.
Zacks Rank & Stocks to Consider
Currently, Semtech carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Salesforce (CRM - Free Report) and Analog Devices (ADI - Free Report) . While Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy), Analog Devices 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 27% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Salesforce shares have lost 10.3% in the past year. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Analog Devices shares have gained 24.8% in the past year. The long-term earnings growth rate for ADI is currently projected at 12.25%.