UBS Sees Semtech’s Data Center Business Doing The Heavy Lifting
Semtech is expected to cut indirect costs and lift gross margin by about 500 basis points (5 percentage points) by shifting to higher-margin products. For fiscal Q3, it guided revenue of $405 million–$415 million and EPS of $1.02–$1.08, beating prior UBS estimates. The improved mix adds roughly $20 million more gross profit in a quarter and supports UBS raising its price target while staying positive.