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Jefferies Analyst Predicts Strong Upcycle for Lattice Semiconductor in the AI Era

By Don Francis, Editor
May 14, 2024 9:32 AM UTC
Jefferies Analyst Predicts Strong Upcycle for Lattice Semiconductor in the AI Era

Jefferies's Blayne Curtis assumed coverage on Lattice Semiconductor (NASDAQ: LSCC) with a Strong Buy rating. The analyst also raised their price target by 4.8% from $84 to $88. Curtis took coverage of the U.S. semiconductor names "with a bullish long-term view into a strong upcycle with duration." The analyst explained that the sector is "still early in the cycle" and that this particular cycle will be even stronger with AI.

Lattice Semiconductor recently reported its financial results for the first quarter of 2024. The company's earnings per share (EPS) of $0.29 were in line with the Zacks Consensus Estimate but missed the EPS of $0.51 reported in Q1 2023 by 43%. Additionally, Lattice Semiconductor's revenue for Q1 2024 was $140.82 million, beating the Zacks Consensus Estimate of $140.08 million, but falling short of Q1 2023's revenue of $184.31 million by 23.6%. The company achieved a gross margin percentage of 69% during the first quarter.

Looking ahead, Lattice Semiconductor's management has provided guidance for the second quarter of 2024. They expect revenue in the range of $120 million to $140 million and a gross margin percentage between 68% and 70%. Despite the near-term impact of cyclic industry headwinds, President & CEO Jim Anderson expressed confidence in the company's long-term prospects. He stated, "The company is well-positioned for the long-term as we execute on the largest product portfolio expansion in our history." CFO Sherri Luther emphasized the company's commitment to disciplined spending while continuing to invest for long-term growth. Lattice Semiconductor also returned capital to shareholders through share repurchases, completing their fourteenth consecutive quarter of such activity.

On May 13, 2024, Jefferies analyst Blayne Curtis made several changes to their coverage of other semiconductor companies. Curtis lowered the price target on Applied Materials Inc by -2.3%, downgrading the stock from Strong Buy to Hold. For Interdigital Inc, the price target was lowered by -5.7% and the stock was also downgraded from Strong Buy to Hold. Navitas Semiconductor Corp saw a significant reduction in its price target by -60%, leading to a downgrade from Strong Buy to Hold. The price target on Arteris Inc was lowered by -18.2%, with the stock also being downgraded from Strong Buy to Hold. However, Advanced Micro Devices Inc maintained its Strong Buy rating, although the price target was reduced by -5% from $200 to $190.

According to WallStreetZen, Jefferies analyst Blayne Curtis is ranked in the top 4% out of 4,581 Wall Street analysts. Curtis has an average return of 13.4% and a win rate of 50%. The analyst specializes in the Technology and Communication Services sectors.

As for Lattice Semiconductor, 85.7% of the top-rated analysts currently rate the stock as a Strong Buy or Buy, while 14.3% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Since Lattice Semiconductor's latest quarterly report on May 3, 2024, the stock price has experienced a slight decline of 0.2%. Year-over-year, the stock is down 15.7%. During the same period, Lattice Semiconductor has underperformed the S&P 500, which is down 26.2%.

Lattice Semiconductor Corporation, headquartered in Hillsboro, Oregon, develops and sells semiconductor products globally. The company offers a range of field programmable gate arrays and video connectivity application specific standard products. Lattice Semiconductor primarily serves original equipment manufacturers in various industries such as communications and computing, consumer, and industrial and automotive markets.

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