Updated Aug 18 at 5:05pm ET.
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RBC Capital raised its price target for the stock from $140 to $165 while keeping a buy-equivalent rating. This move follows a quarter where the company beat expectations for both sales and profit.
Analysts often adjust their targets after earnings to reflect new data on how fast a company is growing. A target this much higher than the current price suggests the firm believes the business is successfully moving into more profitable markets like data centers.
Source: RBC Capital
Jefferies increased its price target from $145 to $175, maintaining a buy rating. This is one of the more optimistic views on the stock, sitting well above the average analyst target of $151.
When a firm raises a target by about 20 percent, it usually means they see a clear path for the company to earn more than previously thought. For this company, that likely stems from its ability to sell more complex chips into AI servers and industrial equipment.
Source: Jefferies
Lattice reported record quarterly revenue of about 201 million dollars, which was 62 percent higher than the same time last year. Profits also came in ahead of what analysts expected, reaching 53 cents per share on an adjusted basis. The company is seeing strong demand for its chips in data centers and a recovery in its industrial business.
Management also gave a positive outlook for the next quarter, expecting sales of its programmable chips to grow about 65 percent. These chips are popular because they can be updated after they are installed, making them useful for fast-changing tech like AI. The stock fell about 7 percent despite the good news, which often happens when a stock's price has already risen a lot and investors decide to take profits.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Lattice has officially closed its acquisition of AMI, a company that makes firmware. Firmware is the specialized software that tells hardware how to start up and communicate with other parts of a computer system.
By owning this software, Lattice can offer a more complete package to its customers in data centers. Instead of just selling a chip, it can sell the chip and the software needed to manage it securely. This makes its products harder for customers to replace with a rival's chips later on.
Source: 8-K filing
The MachXO5-NX TDQ chip family won a technology award for its security features. These chips use post-quantum cryptography, which is a type of encryption designed to stay secure even against the massive processing power of future quantum computers. While industry awards are common, this highlights the company's focus on high-end security. As data centers and governments worry more about future hacking threats, having these features built directly into the hardware could help Lattice win more specialized contracts.
Source: Business Wire
Analysts raised their price targets for Lattice Semiconductor following the company's strong second-quarter earnings report. Most analysts are bullish, with 15 of 17 rating the stock a buy and an average target price suggesting 31% upside.
The company has a perfect two-year streak of beating expectations, and the size of those beats is getting larger as AI demand accelerates.
| Expectation | |
|---|---|
| EPS | $0.55 |
| Revenue | $255M |
Business Wire · Press release · Aug 14
Business Wire · Press release · Aug 12
Seeking Alpha · Opinion · Aug 11
Seeking Alpha · Opinion · Aug 5
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